Melius Research analyst Ben Reitzes says AMD and Micron could follow Nvidia toward a $2 trillion market cap, pointing to renewed CPU demand in AI systems and memory efficiency gains. Both stocks already crossed $1 trillion in 2026 as the AI-driven chipmaker rally broadens beyond Nvidia, though Micron's cyclical history remains a risk factor one prominent investor expects to resurface.
Melius Research's Ben Reitzes said in a Wednesday note to clients that AMD and Micron may be on track for $2 trillion market caps, extending the AI-fueled chipmaker rally beyond Nvidia. He tied AMD's case to the renewed importance of the CPU within agentic artificial intelligence, as system architectures need more CPUs relative to graphics processors.
AMD's case rests on earnings power
AMD crossed the $1 trillion threshold between September 21 and 23, 2026. The move came after the company raised its total addressable market estimate to $2 trillion to $3 trillion by 2030. According to Reitzes: "it will likely need to demonstrate that EPS power of $50+ is possible" to reach its next trillion, meaning its 2030 target of over $20 in earnings per share needs to go a lot higher. UBS analyst Timothy Arcuri has also turned bullish, setting a $670 price target on AMD after the stock pushed past the $1 trillion valuation.
Micron's memory boom meets a skeptic
Micron reached $1 trillion first, in May 2026, on revenue growth of more than 400% year over year alongside gross margins of 84.9%. Reitzes said memory's history of boom-and-bust cycles is what holds the stock back for now. But he expects buybacks to help close the gap once the company returns cash to shareholders.
Not everyone agrees the good times will last. Michael Burry, known for shorting the housing bubble that triggered the 2007-2009 financial crisis, thinks cyclicality is set to return to memory as ramping Chinese capacity eases the shortages that have powered current pricing power and profit margins, according to a Sept. 22 Substack post cited by CNBC.
A pivotal earnings report
Micron reports earnings after the bell Wednesday, with market makers pricing a 7% move for the stock once results land. FactSet estimates call for earnings of $31.72 per share and sales of $51.33 billion. Micron shares were up 0.8% as of noon ET Wednesday, extending a 276% year-to-date gain.
Sources: CNBC, Crypto Briefing
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