AI stock: Massive 326% returns in 6 months; this firm pips Tesla, Meta in m-cap - A look at profit, revenue

Micron Technology briefly topped Meta Platforms and Tesla in terms of market capitalisation on Thursday as artificial intelligence (AI)-led demand continues to fuel a remarkable rally in the memory-chip maker. The company's earnings and revenue forecast also pushed the stock higher. 

The AI stock is already up 326% over the past six months.

Micron shares surged as much as 18.4% during Thursday's session after the company issued a stronger-than-expected outlook, lifting its market value to nearly $1.4 trillion. It marginally surpassed Meta's $1.392 trillion, while inching higher than Tesla, which was also valued at around $1.40 trillion.

By the end of trading, Micron's stock settled 16% higher at $1,213.56, giving the company a market capitalisation of about $1.37 trillion. Meta finished the session with a valuation of roughly $1.378 trillion and Tesla at $1.41 trillion. 

The rally followed Micron's blockbuster fiscal third-quarter results, as booming demand for AI infrastructure continued to drive memory-chip sales. The company also revealed that customers have committed nearly $22 billion in advance orders to secure future memory-chip supplies, underscoring robust demand.

Micron reported fiscal third-quarter revenue of $41.46 billion, more than four times the $9.3 billion recorded in the corresponding period last year. The firm posted net profit of $28.24 billion against less than $2 billion a year ago, rising over 14 times. Adjusted earnings of $25.11 a share sailed past the $20.49 expected.

Looking ahead, the company expects revenue of approximately $50 billion in the current quarter, compared with $11.3 billion in the same period a year ago, signaling continued momentum supported by AI-related spending.

The optimism spread across the memory-chip sector, lifting peer stocks as well. Sandisk jumped nearly 22%, Western Digital gained almost 5%, while Seagate Technology advanced more than 3%.

Micron had crossed the $1 trillion market-cap milestone in late May, joining a growing group of semiconductor companies benefiting from aggressive AI investments by major technology firms. Investor enthusiasm has remained strong as demand for high-performance memory chips continues to accelerate.