Micron Expertise, Inc.’s MU shares greater than tripled final 12 months because of robust synthetic intelligence (AI) reminiscence demand. This 12 months, nonetheless, NVIDIA Company NVDA, one other AI-driven semiconductor inventory, is positioned to overhaul Micron. Let’s see why –
AI Demand Lifts Micron, Inventory Close to All-Time Excessive Poses Dangers
The Micron inventory has witnessed a stupendous run in latest occasions, banking on the incessant demand for its high-bandwidth reminiscence (HBM) chips. Because of the AI infrastructure enlargement, the HBM chips stay in brief provide, resulting in excessive demand. The HBM chips are recognized for reducing energy consumption and processing massive volumes of information.
Rising AI workloads have additionally led to elevated investments in dynamic random entry reminiscence (DRAM) and NAND options, guaranteeing that graphics processing models (GPUs) stay totally purposeful. This, in flip, has lifted Micron’s shares.
Strong demand for Micron’s AI reminiscence chips, mixed with tight provide, helped the corporate ship robust fiscal first-quarter 2026 outcomes, with revenues reaching $13.64 billion, up 56.8% 12 months over 12 months, as cited in buyers.micron.com.
Trying forward, Micron expects fiscal second-quarter 2026 revenues to enhance additional between $18.3 billion and $19.1 billion. The corporate additionally anticipates increased earnings, and with a file money move of $3.9 billion in fiscal first-quarter 2026, is well-poised to fund its progress initiatives.
Nevertheless, Micron’s shares are at the moment hovering close to their all-time excessive reached in early January 2026, leaving little margin of error. Any missed expectation might result in a pointy drop, making Micron’s path this 12 months doubtlessly turbulent.
NVIDIA Set to Outshine Micron because the AI Chip Inventory of 2026
With Micron’s progress outlook unsure, NVIDIA gives a extra assuring path to returns in 2026. It is because the persistent demand for the CUDA software program platform and the aggressive edge within the AI {hardware} market are more likely to increase NVIDIA’s progress.
Moreover, with the numerous rise in international knowledge heart spending, NVIDIA is well-positioned to promote its in-demand computing {hardware}. The corporate’s progress can be supported by the Trump administration’s approval to promote H200 AI chips to “authorised clients” in China, offering a further increase to revenues. It’s extremely unlikely that Beijing will completely ban these chips, that are in excessive demand amongst Chinese language corporations.
NVIDIA’s new-generation Blackwell chips have skilled surging demand and, in all chance, will stay extremely sought-after sooner or later. Using the robust demand for its revolutionary chips and cloud GPUs, NVIDIA anticipates fiscal fourth-quarter 2026 revenues close to $65 billion, with a ±2% margin, citing investor.nvidia.com.
NVIDIA has already reported fiscal third-quarter 2026 revenues of $57 billion, up 62% 12 months over 12 months. With revenues set to rise, earnings are additionally anticipated to climb, doubtless boosting NVIDIA’s inventory value. Consequently, NVIDIA might emerge because the AI chip inventory to look at for progress this 12 months, taking the highlight away from Micron. NVIDIA, anyhow, is buying and selling above its long-term 200-day shifting common, signaling a bullish development (learn extra: SoundHound Vs. NVIDIA: Which AI Inventory Ought to You Purchase Earlier than 2026?).
Picture Supply: Zacks Funding Analysis
NVIDIA at the moment has a Zacks Rank #3 (Maintain). You possibly can see the whole record of at this time’s Zacks Rank #1 (Robust Purchase) shares right here.
Zacks Names #1 Semiconductor Inventory
This under-the-radar firm makes a speciality of semiconductor merchandise that titans like NVIDIA do not construct. It is uniquely positioned to benefit from the subsequent progress stage of this market. And it is simply starting to enter the highlight, which is precisely the place you wish to be.
With robust earnings progress and an increasing buyer base, it is positioned to feed the rampant demand for Synthetic Intelligence, Machine Studying, and Web of Issues. World semiconductor manufacturing is projected to blow up from $452 billion in 2021 to $971 billion by 2028.
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