Look at the Dec 2025 quarter for Google vs 5 quarters prior, the Jan 2026 one for NVIDIA and the Feb 2026 for MU and you get this...
Google CAPEX increased 1.94X, NVIDIA revenue increased 1.71X, and MU revenue increased 2.25X.
If you add the most recent quarters in you get Google CAPEX up 2.48X and NVIDIA revenue up 2.05X.
Basically... the last 5 and 6 quarters CAPEX spending by Google and I assume by hyperscalers in general, has increased and is increasing more rapidly then revenue for NVIDIA. On the other hand, MU has seen its revenue increase more and increase faster over that same period.
The question that must be asked is why are the prices for memory increasing so much?
The answer is because the demand-supply mismatch for memory is greater than that for GPUs and CPUs.
To produce the latest GPUs and CPUs for AI you need the latest and best memory. This is also needed to improve performance per watt. To train newer models and to run them you need more memory and more memory bandwidth. The only suppliers for this are SK Hynix, Samsung, and MU. Companies like that Chinese one making DDR4 memory lack the ability to make the latest memory needed. Even the 3 aforementioned companies would need to spend tens of billions and it takes time to build the latest generation of Fabs to increase production.
Basically... the GPU and CPU market for AI is facing constraints at the memory level that will only get worse with the upcoming Vera Rubin architecture and will really hit a brick wall when Feynmann in 2028/2029 comes out.
But... but... what about AVGO and MRVL... what every moron does not seem to understand is that optical interconnects are foundational to Feynmann in 2028/2029 and not to Vera Rubin. People jumping on MRVL because "daddy" Jensen said it is the next $1T company apparently did not understand that this is something based on perceived supply constraints for a critical component 2-3 years in the future.
If you are not getting it yet.. for the next 2-3 years memory is the most direct constraint to produce GPUs and CPUs needed for AI compute. That means that RAM prices are going up.
Also... it should be noted that NVIDIA is one manufacturer of GPUs and CPUs that need the latest RAM. Google, Amazon and others also make their own chips that need this RAM. In other words the RAM manufacturers have the hyperscalers and NVIDIA throwing money at them to get whatever RAM they can.
MU was projecting about a 30% increase in revenue for the quarter just ended. It is possible we might see a beat on revenue, although as MU has much of its capacity locked up in contracts their ability to raise prices beyond what they already projected is likely somewhat limited.
The bottom line is that seeing net income this quarter of $20B+ is well within reach and that number will increase rapidly as MU continues to capture an increasing percent of the overall increase in CAPEX spending. NVIDIA captures a declining share of that increase, whereas MU captures an increasing amount of it...
Do some math... a company that will be making over $100B a year and will see that number increase (I would not be surprised to see that number double over the next year or so) and will see it sustain for 5-6 years at least has a market cap of $1T at $900 a share. Bottom line MU is undervalued.
Long shares and some calls for earnings in June. Obviously share price after earnings might not reflect my view of value and no guarantees they win even if every fundamental metric here is right.