Micron briefly overtakes Meta and Tesla in market value amid AI chip boom

Micron Technology briefly surpassed Meta Platforms and Tesla in market capitalisation after a sharp rally driven by strong earnings guidance and surging demand for artificial intelligence (AI) memory chips.

The US-based memory chip maker saw its shares jump as much as 18.4% during intraday trading following its latest quarterly update. The stock eventually closed 15.8% higher, extending its strong upward momentum.

By the end of the trading session, Micron’s market value stood at approximately $1.37 trillion, narrowly trailing Meta at $1.38 trillion and Tesla at $1.41 trillion, according to market data.

Strong AI demand fuels investor optimism

The rally was powered by Micron’s upbeat outlook for the fourth quarter. The company projected revenue of around $50 billion for the quarter ending August, significantly above Wall Street estimates of $43.2 billion.

The stronger-than-expected guidance reinforced investor confidence that demand for AI-related memory products—particularly high-bandwidth memory (HBM)—continues to outpace supply.

Micron also disclosed that customers have already placed $22 billion in advance orders to secure future chip supplies, signalling sustained demand from AI infrastructure developers and hyperscalers.

Supply constraints expected to persist

Chief Executive Officer Sanjay Mehrotra said the company does not expect supply conditions to ease in the near term. He noted that demand continues to significantly exceed production capacity.

According to remarks cited by Bloomberg, Mehrotra indicated that there is “no line of sight” for supply catching up with demand, with tight conditions expected to persist beyond 2027 and potential normalization only by 2028.

Stock surge extends record run

Micron has emerged as one of the standout performers of 2026. The stock has risen roughly 326% year-to-date, reflecting strong investor appetite for semiconductor companies tied to AI infrastructure growth.

The latest rally also followed a broader milestone earlier this year, when Micron crossed the $1 trillion market capitalisation mark, joining the ranks of the world’s most valuable technology firms.

Semiconductor sector rallies

Micron’s performance lifted the broader semiconductor industry. The Philadelphia Semiconductor Index rose 3.2% on Thursday and remains on track for its strongest quarterly performance on record.

Other chip-related stocks also gained momentum, with Sandisk rising 22%, Western Digital up 7.4%, Seagate Technology advancing 4.3%, and Qualcomm gaining on its expansion plans in AI-focused data centre solutions.

Mixed sentiment in broader tech sector

Despite the semiconductor rally, the wider technology market ended on a mixed note as investors assessed whether AI-driven spending can remain sustainable at current levels.

Concerns over rising infrastructure costs also surfaced after Apple raised prices on several devices, including iPads and MacBooks, citing higher memory and storage costs. The development triggered a 6.1% drop in Apple shares, adding to ongoing debate about whether AI-related cost pressures will eventually be passed on to consumers.

Outlook

As AI infrastructure investment accelerates, semiconductor firms like Micron continue to benefit from strong demand cycles. However, market participants remain divided on how long the current surge in AI spending can sustain its pace.