MICRON 1 trillion VS when NVIDIA reached 1 trillion
u/MotherBake4137 ·
Reddit — r/ValueInvesting
· May 29, 2026 at 20:13
· ⬆ 16 pts
· 💬 27 comments
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AI Summary
Summary
The post compares Micron (MU) and Nvidia (NVDA) at the moment each reached a $1 trillion market cap, highlighting MU's far higher revenue ($23.8B vs $8.2B) and net income ($13.7B vs $1.6B).
The author questions whether MU is actually worth $1T by juxtaposing its earnings power against NVDA's at the same valuation, implying MU may be undervalued or at least more profitable relative to its market cap.
Quality assessment: Speculative comparison with basic financial metrics; not deep DD but raises a valid relative-valuation point typical of value investing discussions.
MU’s net income ($13.7B) at $1T market cap is 8.6x higher than NVDA’s net income ($1.6B) at its own $1T milestone, suggesting stronger underlying earnings power. If the market applies similar multiples to profitable semiconductor firms, MU’s current valuation may be attractive relative to its earnings, creating a potential re-rating opportunity. MU appears to offer better value per dollar of earnings than NVDA did at the same market cap, making it a candidate for long-term appreciation. Memory industry cyclicality, demand slowdown, or margin compression could erode earnings; also, the comparison ignores growth rates and market positioning.