Micron Makes the $1 Trillion Club a Little More Crowded

Motley Fool Staff, The Motley Fool Sun, June 7, 2026 at 3:05 AM GMT+7 18 min read MU NVDA LLY In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren discuss: To catch full episodes of all The Motley Fool s free podcasts, check out our podcast center. When you re ready to invest, check out this top 10 list of stocks to buy. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!* Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. *Stock Advisor returns as of June 6, 2026. This podcast was recorded on May 27, 2026. Travis Hoium: We have a new member of the $1 trillion club. Motley Fool Hidden Gems Investing starts now. Welcome to Motley Fool Hidden Gems Investing. I m Travis Hoium, joined today by Lou Whiteman and Rachel Warren. Guys, we have a new member of the trillion-dollar club. I believe there s now 14 companies that are worth over $1 trillion. This used to be a really big number, and now it seems like we get a new company every week. But, Lou, the company that we re talking about is Micron. Passed $1 trillion. I thought it was interesting. I look back at their financials five quarters ago; they were free cash flow negative. Now they are the hottest stock on the market. This is a cyclical industry. Typically, a cyclical industry, but this is now also one of the most valuable companies in the world. Is this time around different for Micron? Lou Whiteman: Maybe. But let s pause for a second and look at what they ve done. This was a $350 billion company on Jan. 1. Guys, it s still May. They ve had a heck of a career in a couple of months. Gained 19% yesterday, basically on an analyst price target move. These are not normal times. That said, there is a there there. These AI models need memory. Micron has done a decent job shifting its business just away from this brutal commodity cycle and towards a higher-value product. They are special among memory. The note in question, the note that triggered this move over $1 trillion. That analyst sees long-term contracts in plays through 2029. If that s correct, and I do think they re directionally correct anyway, this is not a fluke. This is not a one-time thing. This is the market responding to real demand, and with AI, just the numbers are all huge, but the demand is huge. Travis Hoium: Rachel, it does seem like this time is a little bit different. They are in a little bit higher value segment of the market, but there s also more players coming into the market. At the end of the day, memory is the thing where supply and demand ultimately matters, but free cash flow does, too, and it seems like they re going to have a really good year. Rachel Warren: Absolutely. It s interesting to take a step back because historically, memory was this unglamorous brutal corner of tech. Companies like Micron, they made standard dram for PCs and smartphones, demand would dip, inventory piles up, prices crash. It was a really pure commodity cycle. There has been a lot that s changed over the last few years, and a lot of that goes back to high-bandwidth memory. Modern AI accelerators, you think of Nvidia s Black LOD chips, for example, they can t function without massive amounts of premium ultra-fast memory stacked directly next to the processor. Micron has pivoted from selling what was essentially in comparison, a cheap commodity to selling this very high margin, highly customized strategic asset. We re really seeing the physical reality of chip manufacturing is creating a massive bottleneck, as well and that actually benefits Micron. They’ve sold out their entire high-bandwidth memory chip supply for all of 2026 under fixed long-term contracts. The CEO is saying that they can only fulfill about 50% to 67% of current customer demand, and because building these semiconductor fabs takes years, new supply from their domestic expansions won t even hit the market until 2028. That is creatin

Micron Makes the $1 Trillion Club a Little More Crowded

Key takeaways

More in business