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Micron (MU) vs. NVIDIA (NVDA): Which Semiconductor Stock Should You Buy?
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Although the semiconductor industry’s incredible 2016 run did carry over into the New Year, things have cooled down a bit for chipmakers lately. Nevertheless, some of the semiconductor giants remain among the hottest stocks on the market, and the industry is certainly still attracting plenty of investor attention.
Today, we’ll be taking a look at two of the most popular semiconductor stocks right now: Micron Technology (MU - Free Report) and NVIDIA Corporation (NVDA - Free Report) .
NVIDIA is a leading developer of graphics processing units for the video gaming market, as well as system-on-a-chip units for the mobile computing and automotive markets.
Micron is a global leader in the production of memory-based semiconductors, including dynamic random-access-memory, flash memory, and solid-state drives.
While a shift in consumer behavior was once considered a threat to semiconductor manufacturers, both of these companies stand to benefit from the increased demand for chips that will come as the Internet of Things, self-driving cars, and new forms of entertainment continue to explode (also read: How to Invest in the "Internet of Things").
But how are these stocks shaping up right now? Let’s take a closer look.
MU vs. NVDA
As we jump into our head-to-head comparison of NVIDIA and Micron, let’s check out a few key stats from both companies:
As we can see right off the bat, the latest earnings estimate revision activity favors Micron. While NVIDIA has seen no estimate revisions for the current quarter, Micron has witnessed four analysts revise their estimates upward. This is the primary factor influencing its Zacks Rank #1 (Strong Buy), which significantly outpaces NVIDIA’s Zacks Rank #4 (Sell).
And while NVIDIA’s recent story has been one of aggressive growth, it’s Micron that is expected to post quadruple-digit EPS gains this year. A major improvement in sales and profitability has helped the stock gain more than 150% over the past year—a time period that has also seen NVIDIA’s share prices gain more than 170%. Both stocks have had some incredible momentum, but as we can see from their respective year-to-date performances, Micron looks to have maintained that momentum a bit better.
Micron also has the edge for value-minded investors. Its impressive P/E ratio is just one of several metrics that have helped it earn an “A” grade for Value, which has contributed to its “A” grade in the overall VGM category.
It’s worth noting that Micron only matched our earnings expectations last quarter, and NVIDIA has a slight edge in the earnings surprise category thanks to its recent results. Nevertheless, both of these companies have proven that they can consistently meet or surpass estimates.
Bottom Line
Given their specialties, Micron and NVIDIA are not really competitors on the semiconductors market, but if an investor could only pick one of these stocks to own, Micron has the edge right now. However, both of these companies—and the entire semiconductor industry—should benefit from the plethora of emerging markets that will demand that latest and greatest tech from the world’s chipmakers.
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Micron (MU) vs. NVIDIA (NVDA): Which Semiconductor Stock Should You Buy?
Although the semiconductor industry’s incredible 2016 run did carry over into the New Year, things have cooled down a bit for chipmakers lately. Nevertheless, some of the semiconductor giants remain among the hottest stocks on the market, and the industry is certainly still attracting plenty of investor attention.
Today, we’ll be taking a look at two of the most popular semiconductor stocks right now: Micron Technology (MU - Free Report) and NVIDIA Corporation (NVDA - Free Report) .
NVIDIA is a leading developer of graphics processing units for the video gaming market, as well as system-on-a-chip units for the mobile computing and automotive markets.
Micron is a global leader in the production of memory-based semiconductors, including dynamic random-access-memory, flash memory, and solid-state drives.
While a shift in consumer behavior was once considered a threat to semiconductor manufacturers, both of these companies stand to benefit from the increased demand for chips that will come as the Internet of Things, self-driving cars, and new forms of entertainment continue to explode (also read: How to Invest in the "Internet of Things").
But how are these stocks shaping up right now? Let’s take a closer look.
MU vs. NVDA
As we jump into our head-to-head comparison of NVIDIA and Micron, let’s check out a few key stats from both companies:
And while NVIDIA’s recent story has been one of aggressive growth, it’s Micron that is expected to post quadruple-digit EPS gains this year. A major improvement in sales and profitability has helped the stock gain more than 150% over the past year—a time period that has also seen NVIDIA’s share prices gain more than 170%. Both stocks have had some incredible momentum, but as we can see from their respective year-to-date performances, Micron looks to have maintained that momentum a bit better.
Micron also has the edge for value-minded investors. Its impressive P/E ratio is just one of several metrics that have helped it earn an “A” grade for Value, which has contributed to its “A” grade in the overall VGM category.
It’s worth noting that Micron only matched our earnings expectations last quarter, and NVIDIA has a slight edge in the earnings surprise category thanks to its recent results. Nevertheless, both of these companies have proven that they can consistently meet or surpass estimates.
Bottom Line
Given their specialties, Micron and NVIDIA are not really competitors on the semiconductors market, but if an investor could only pick one of these stocks to own, Micron has the edge right now. However, both of these companies—and the entire semiconductor industry—should benefit from the plethora of emerging markets that will demand that latest and greatest tech from the world’s chipmakers.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today, Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>