1 Unstoppable Stock to Buy Before It Soars 75% to Join the $2 Trillion Club, According to 1 Wall Street Analyst

There are currently seven companies with market caps of $2 trillion or more, but the accelerating demand for semiconductors is pushing new candidates to the fore. One prime example is Micron Technology (NASDAQ: MU) -- and I'm convinced that the ongoing adoption of artificial intelligence (AI) will send this chip specialist to new heights. Micron is one of the world's leading providers of memory and storage chips, and demand for its wares has been insatiable. As a result, its operating and financial results have been growing at a blistering pace.

The company has a market capitalization of roughly $1.3 trillion as I write this, having soared more than sevenfold over the past year. After gains of that magnitude, you might be tempted to think its run is over, but many are convinced there's further upside ahead -- including some of Wall Street's finest.

Let's take a look at recent developments and why one Wall Street analyst believes the stock will soar 75% to $2.2 trillion over the coming year or so.

Image source: The Motley Fool.

Short supply, strong results

While graphics processing units (GPUs) are the workhorse processors behind AI, Micron provides the flash memory and storage chips that power them. The company's NAND flash memory, high-bandwidth memory (HBM), and dynamic random-access memory (DRAM) chips are critical components in AI processing. However, demand continues to accelerate even as supplies are limited.

Micron is scrambling to meet the unprecedented demand. Earlier this year, it broke ground on a new memory fabrication facility in Singapore, but it won't come online until 2028, though some HBM packaging (the process of vertically stacking chips) may begin in 2027. Construction on facilities in New York, Japan, and Idaho is also underway.

Micron's recent results help illustrate the persistent demand. In its fiscal 2026 third quarter (ended May 28), Micron delivered record revenue that soared 346% year over year to $41.5 billion, driving adjusted earnings per share (EPS) up 13-fold to $24.67.

Management is predicting this trend will continue as its Q4 outlook calls for revenue of $50 billion, up 342% year over year, and adjusted EPS of $31, up more than 10-fold (both at the midpoint of its guidance). Management also dropped this nugget: "We now expect supply demand conditions for both DRAM and NAND to remain tight beyond calendar 2027."

The biggest surprise, however, was the establishment of Micron's Strategic Customer Agreements. These unbreakable contracts lock in chip volume and pricing for the next five years and require security deposits for 16 of the company's most strategic customers. This is guaranteed to reduce the cyclicality of Micron's revenue streams in the coming years.

What Wall Street is saying

Wall Street is remarkably bullish on Micron, with 88% of analysts who issued an opinion in June rating the stock a buy or strong buy. Moreover, the average price target of $1,454 suggests 27% upside compared to Monday's closing price of about $1,145.

One analyst is even more bullish. Just this week, Cantor Fitzgerald analyst C.J. Muse raised his price target on Micron to $2,000, up from $1,500, while maintaining an overweight (buy) rating on the shares. This represents potential upside for investors of 75% compared to Monday's closing price.

The analyst cited Micron's Strategic Customer Agreements, which lock in half the company's revenue at high margins. Muse points out that this will "shift pricing dynamics, reduce quarter-end volatility in negotiations, and support more stable long-term margin and price discovery versus prior cycles."

Analysts' consensus estimates are for Micron to generate revenue of $129.6 billion in 2026, giving it a forward price-to-sales (P/S) ratio of roughly 10. Assuming its P/S ratio remains constant, Micron will need to generate revenue of roughly $227 billion annually to support a stock price of $2,000 and a market cap of $2.26 trillion. It should come as no surprise, then, that Wall Street is forecasting 2027 revenue of nearly $236 billion, which would easily support a stock price of $2,000.

Despite its blistering growth and the backing of Wall Street, Micron trades for less than 16 times forward earnings (as of this writing), giving astute investors the opportunity to buy the stock at an attractive entry point.

Danny Vena, CPA has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.