The rising demand for AI infrastructure and High-Bandwidth Memory (HBM) has led to an exponential growth of investment in the memory market. The popularity of data centers, which need over 70% of high-end memory production to function, has led to shifting sentiment among investors, as market dynamics change.
Billionaires David Tepper of Appaloosa Management and Michael Platt of BlueCrest Capital Management reduced their NVIDIA (NVDA) holdings in Q4 2025 and pivoted to Micron Technology, Inc. (MU). Tepper cut his position in Nvidia by 10% and increased his stake in MU by 200%, making it a top-five holding on his profile, while Platt slashed his Nvidia position by 96% to open a new position in Micron.
Micron’s strong Q1 FY2026 revenue growth (56.6% year-over-year), soaring 40,000% since its initial public offering, and the strong demand for HBM suggest that the memory chip giant is gearing up to soar higher, potentially offering phenomenal growth in the next stage of AI adoption.
The Long-Term Memory Shift
According to Form 13F of the Securities and Exchange Commission for the last quarter, Tepper and Platt have increased their stakes in MU in a major way, going with the strengthening AI tide towards an exciting future, where the tables are expected to turn from a shifting demand of GPUs to increased investments within the field of Artificial Intelligence (AI) and semiconductor technology.
Micron Technology (MU) is a key supplier of high-bandwidth memory (HBM) essential for AI data centers, and has seen massive long-term growth. Tepper and Platt appear to be shifting from GPU leader Nvidia into memory, betting on Micron’s growth in the AI infrastructure market.
Taking into account Tepper’s $6.9 billion market value, the recent 200% increase of his MU stake now covers 6.2% of his portfolio, while the 10% reduction of his Nvidia shares brings his stake down to 4.6%. Platt sold off his Nvidia shares by 96%, reducing his stake to 0.2% of his portfolio, with the newly opened MU positions now covering 0.1%.
Tepper’s purchase brings his MU stake into the top five, including other giants within the AI industry like Alibaba and Meta Platforms. Billionaire Platt, on the other hand, is known for his investments in finance and energy. Their combined interest in MU signals growing investor confidence in the potential for growth of the AI memory sector.
Analysing Micron’s Earnings Growth
“AI is reshaping everything—from how we drive to how we design, diagnose, and discover. Behind every breakthrough is an unseen foundation: memory and storage that move, store, and process data at incredible speed and efficiency. Micron is that invisible layer powering #AI, from massive data centers to the smallest edge devices.” – @MicronTech
Memory stocks like Micron are soaring because HBM is considered a strategic, long-term asset. AI-driven demand is linked to long-lived infrastructure projects rather than short-term consumer trends, making the growth in memory demand more sustained.
The next stage of AI adoption involves inference, as opposed to the standard learning models of yesteryears that merely served as data storage and delivery tools. The upcoming models are designed to carry out complex thought processes to generate their own answers and solutions, the scaling of which would require significant capital.
Micron (MU) reported Q1 FY2026 revenue of $13.64 billion, up 56.6% year over year. Micron’s stock outperformed major chip peers, including Intel, STMicroelectronics, and Texas Instruments, by surging over 50% in the last three months.
Being one of the world’s largest suppliers of DRAM and NAND memory chips, the increased demand has improved DRAM and NAND pricing, allowing Micron to post high revenue growth and solid gross margins.
MU is currently trading at $426.13.
What to Expect from MU in the Future?
In a post on X on March 3, 2026, @MicronTech introduced the 256GB SOCAMM2, the world’s first high-capacity, modular LPDRAM aimed at AI data centers, utilizing monolithic 32Gb LPDDR5X chips to achieve 256GB capacity, 3x better power efficiency, and 2.3x faster inference than traditional memory. This investment is a game-changer that addresses the immense expenditure accompanying AI data center power demand and thermal challenges, offering enhanced energy efficiency and lower power consumption.
Along with the SOCAMM2, further investments within the field include the expansion of its DRAM production capacity with the purchase of the Powerchip Semiconductor Manufacturing Corporation (PSMC)’s P5 fabrication facility in Tongluo, Taiwan, for about $1.8 billion, as well as the $100 billion New York fabrication plant, started in January 2026, as long-term commitment to domestic manufacturing to satisfy rising AI demand.
Micron’s high-bandwidth memory (HBM) addressable market is projected to grow from $35 billion in 2025 to $100 billion by 2028. Micron’s HBM3E memory is crucial for NVIDIA’s Blackwell GPUs and other AI processors, driving massive demand and supply constraints.
Should You Invest in MU?
In the wake of the memory chip shortage driven by massive AI demand, data centers are in urgent need of energy management tools, high-bandwidth memory (HBM) devices, and efficient tools to tackle thermal cooling and maintenance costs.
The pivot by billionaires David Tepper and Michael Platt from their large shares in Nvidia’s GPUs to Micron’s memory chips suggests shifting market sentiment in answer to the AI boom.
As of early 2026, market sentiment is strongly bullish, with many analysts highlighting MU as a key AI player expected to continue its upward momentum. Analysts predict significant growth for MU in the DRAM and NAND markets for 2026-2027, with the company’s plans of expansion and innovation to meet increasing demand being key to its long-term growth potential.
