The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street | The Motley Fool

Wall Street’s median target price implies 70% upside in Micron, a memory chip stock benefiting from the artificial intelligence boom.

Currently, 13 stocks traded on U.S. exchanges have a market capitalization of at least $1 trillion. Of those companies, Wall Street is most bullish on these three:

Among 56 analysts, Micron Technology (MU +2.96%) has a median target price of $1,575 per share. That implies 70% upside from its current share price of $925.

Among 53 analysts, Broadcom has a median target price of $525 per share. That implies 54% upside from its current share price of $329.

Among 72 analysts, Nvidia has a median target price of $320 per share. That implies 45% upside from its current share price of $219.

The figures above suggest that Wall Street analysts view Micron as the best trillion-dollar stock to buy now. Here's what investors should know about the semiconductor company.

Micron's profits are soaring due to a memory chip supply shortage

Micron is a semiconductor company that manufactures memory chips and data storage solutions built on NAND flash and DRAM technology, including high-bandwidth memory (HBM). Its products are used in data centers, mobile devices, personal computers, and automotive systems.

Memory chips are currently in short supply due to immense demand for artificial intelligence infrastructure. The immediate consequence of that supply shortage is that DRAM and NAND prices have more than doubled in the last two years, and Micron's financial results have been impeccable.

In the September quarter, Micron's revenue increased 379% to $54 billion, and non-GAAP earnings soared to $33.42 per diluted share, an 11-fold increase from $3.03 per diluted share last year. And investors have good reason to think the company will maintain similar momentum in the coming years, as the memory chip supply shortage is likely to persist through at least 2028.

Averytin News Financial update.