Micron Technology (NASDAQ:MU) is among the latest companies to cross the elusive $1 trillion market capitalization, joining the likes of the Magnificent Seven stocks and several other technology giants. One analyst sees Micron's surge continuing and the stock passing the valuation of two of the Magnificent Seven members.
Can Micron Pass Tesla?
Strong second-quarter financial results reported by Micron have the stock surging higher and analysts raising their price targets.
UBS analyst Timothy Arcuri maintained a Buy rating on Micron stock and raised the price target from $535 to $1,625 after earnings.
The new price target is one of the highest among analysts and would see Micron Technology worth $1.8 trillion, a market capitalization that would surpass both Meta Platforms (NASDAQ:META) and Tesla Inc (NASDAQ:TSLA), which are currently valued at $1.55 trillion and $1.63 trillion respectively.
While UBS sees Micron stock surging higher, the analyst firm has a Neutral rating on Tesla with a price target of $364, below the current $443.23 share price.
Based on the analyst price targets, UBS sees Micron's market capitalization going to $1.832 trillion and Tesla market capitalization falling to $1.367 trillion.
This would take Micron around $465 billion ahead of Tesla.
Micron would be the eighth most valuable company in the world compared to a current ranking of 14th. Tesla, currently the 9th most valuable company, would fall to 11th place based on the price targets and implied market capitalizations.
What's Next for Micron
Arcuri said hyperscalers are willing to pay higher prices now for long-term supply commitments, something that is playing advantage to the likes of Micron.
Micron's second-quarter revenue was up 196% year-over-year, with records set for revenue, gross margin, earnings per share and free cash flow in the quarter.
Micron CEO Sanjay Mehrotra said the company expects "significant records" in the third quarter.
"In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand," Mehrotra said.
Micron's third-quarter revenue guidance of $33.5 billion, plus or minus $750 million, came in significantly higher than Street estimates of $23.8 billion.
Analysts are raising their financial forecasts and price targets for Micron, a stock that could continue to climb in the world’s most valuable companies chart this year.
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