Back in August 2018, Apple (AAPL 0.76%) became the first stock to cross the $1 trillion valuation threshold. Now, 15 companies are worth $1 trillion or more. There will be more and more $1 trillion companies over time, and eventually this threshold will become a bit less important, but it's still impressive to reach a mark that few companies have ever passed.
There was a barrage of new $1 trillion companies all within the same week, but one of the most intriguing ones is Micron Technology (MU +0.90%). It reached this level due to unprecedented demand, which is expected to continue for some time. By some measures, it could still have a long way to go.
So, is Micron still a buy after its major run?
Micron has come a long way in a short time
One year ago, Micron's market cap was about $105 billion, and nobody had a $1 trillion valuation on their bingo card a year later. But that's what Micron has delivered. While Micron has executed at a high level, the reality is that it is not responsible for most of its gains. That would be because of the artificial intelligence (AI) hyperscalers.
NASDAQ: MU
Key Data Points
What has allowed Micron to push across the $1 trillion threshold is insatiable demand for computing power. GPUs and other custom AI chips are major consumers of DRAM, which Micron manufactures. There is a significant shortage of memory chips, which has driven prices higher over the past year. Because Micron sells these chips, it has capitalized on soaring prices, which have translated into unreal revenue and earnings growth.
MU Revenue (Quarterly YoY Growth) data by YCharts
Micron told investors during its last quarterly conference call that it could meet only half to two-thirds of production demand in the medium term, so this shortage is likely to persist for some time. Micron and its peers are working on building more production capacity, but that will take a bit. At the same time, Micron projects the total addressable market for its high-bandwidth memory (HBM) will expand from $35 billion in 2025 to $100 billion by 2028.
A shortage combined with expanding demand is a great sign for Micron and could continue to drive the stock higher. Just because Micron's run to $1 trillion has happened doesn't mean it's over. It could have even more upside over the next few years as demand ramps up, making it a smart stock to invest in even now.
