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Micron vs. NVIDIA: Which AI Hardware Stock Should Investors Buy Now?
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Key Takeaways
Micron's Q3 revenues and EPS jumped 37% and 208% year over year, driven by AI memory demand.
NVIDIA's data center revenues rose 56% to $41.1B, fueled by cloud and AI infrastructure adoption.
Micron's fiscal 2026 EPS growth forecast of 62.4% tops NVIDIA's 44.5%, with a lower forward P/S multiple.
Micron Technology, Inc. (MU - Free Report) and NVIDIA Corporation (NVDA - Free Report) are two of the most important players in the artificial intelligence (AI) infrastructure space. Micron provides the advanced memory chips that store and move the massive amounts of data required for AI, while NVIDIA builds the graphics processing units (GPUs) that perform heavy computing tasks. The two companies are positioned to benefit from surging demand for AI and high-performance computing.
However, their financial performance, growth strategies and valuations offer different risk-reward profiles for investors considering semiconductor exposure. Let’s see which stock has an edge over the other from an investment perspective.
Micron: Riding on AI Memory Wave
Micron sits at the heart of several transformative tech trends. Its exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-generation DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.
The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the third quarter of fiscal 2025, its revenues and non-GAAP EPS soared 37% and 208%, respectively, year over year.
Micron is also riding on a strong wave of high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest due to their superior energy efficiency and bandwidth, which are ideal for AI workloads.
In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2026 revenues indicates a year-over-year improvement of 33.9%.
NVIDIA: Leader in AI GPU
NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company continues to see strong demand from cloud providers, enterprises and startups building AI systems. In the second quarter of fiscal 2026, NVIDIA’s data center revenues rose 56% year over year to $41.1 billion, showing the strength of this part of its business. The company’s overall revenues and non-GAAP EPS soared 56% and 54%, respectively.
Its newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Much of this demand comes from large cloud providers that depend on NVIDIA GPUs for their AI workloads. The Blackwell architecture promises significantly higher performance, and upcoming versions like Blackwell Ultra and Vera Rubin are expected to strengthen NVIDIA’s position further as AI demand keeps growing.
In a significant development in August, NVIDIA received approval to sell its H20 chips in China after signing a deal with the U.S. government. Under the terms of the agreement, NVIDIA will pay 15% of total revenues from H20 sales in China to the U.S. government.
The latest arrangement with the U.S. government could strengthen NVIDIA’s presence in China and boost revenue contribution from the country, which dropped 13% in fiscal 2025 from more than 21% in fiscal 2023. Access to the Chinese market will support its overall revenue growth and maintain its position as a leader in AI chip technology.
NVIDIA is anticipated to remain on a high-growth trajectory. The Zacks Consensus Estimate for the company’s fiscal 2026 revenues indicates a year-over-year surge of 55.5%.
Micron vs. NIVDIA: Earnings Estimate Trend
The Zacks Consensus Estimate for Micron’s fiscal 2026 earnings has been revised upward by 6.4% to $13.05 per share over the past 30 days. This indicates a year-over-year increase of 62.4%.
Image Source: Zacks Investment Research
The consensus mark for NVIDIA’s fiscal 2026 earnings has also been revised upward over the past seven days by 1% to $4.32 per share. However, the estimated year-over-year growth of 44.5% is lower than that of Micron’s.
Image Source: Zacks Investment Research
MU vs. NVDA: Stock Performance and Valuation
Both stocks have surged this year as AI adoption accelerates. Year to date, shares of Micron and NVIDIA have soared 40.8% and 27.1%, respectively.
YTD Price Return Performance
Image Source: Zacks Investment Research
Despite the robust upswing in the share price, Micron’s forward 12-month price-to-sales (P/S) multiple of 3.58 is significantly lower than NVIDIA’s 17.4. This reflects that Micron offers investors a cheaper entry point into AI hardware with significant room for earnings expansion as memory demand accelerates.
Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Final Thoughts: Micron Is the Better Buy Right Now
Both Micron and NVIDIA are positioned to gain from AI. However, MU’s higher EPS growth projection and lower valuation P/S multiple than NVDA make it a better investment choice right now.
Image: Bigstock
Micron vs. NVIDIA: Which AI Hardware Stock Should Investors Buy Now?
Key Takeaways
Micron Technology, Inc. (MU - Free Report) and NVIDIA Corporation (NVDA - Free Report) are two of the most important players in the artificial intelligence (AI) infrastructure space. Micron provides the advanced memory chips that store and move the massive amounts of data required for AI, while NVIDIA builds the graphics processing units (GPUs) that perform heavy computing tasks. The two companies are positioned to benefit from surging demand for AI and high-performance computing.
However, their financial performance, growth strategies and valuations offer different risk-reward profiles for investors considering semiconductor exposure. Let’s see which stock has an edge over the other from an investment perspective.
Micron: Riding on AI Memory Wave
Micron sits at the heart of several transformative tech trends. Its exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-generation DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.
The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the third quarter of fiscal 2025, its revenues and non-GAAP EPS soared 37% and 208%, respectively, year over year.
Micron is also riding on a strong wave of high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest due to their superior energy efficiency and bandwidth, which are ideal for AI workloads.
In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2026 revenues indicates a year-over-year improvement of 33.9%.
NVIDIA: Leader in AI GPU
NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company continues to see strong demand from cloud providers, enterprises and startups building AI systems. In the second quarter of fiscal 2026, NVIDIA’s data center revenues rose 56% year over year to $41.1 billion, showing the strength of this part of its business. The company’s overall revenues and non-GAAP EPS soared 56% and 54%, respectively.
Its newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Much of this demand comes from large cloud providers that depend on NVIDIA GPUs for their AI workloads. The Blackwell architecture promises significantly higher performance, and upcoming versions like Blackwell Ultra and Vera Rubin are expected to strengthen NVIDIA’s position further as AI demand keeps growing.
In a significant development in August, NVIDIA received approval to sell its H20 chips in China after signing a deal with the U.S. government. Under the terms of the agreement, NVIDIA will pay 15% of total revenues from H20 sales in China to the U.S. government.
The latest arrangement with the U.S. government could strengthen NVIDIA’s presence in China and boost revenue contribution from the country, which dropped 13% in fiscal 2025 from more than 21% in fiscal 2023. Access to the Chinese market will support its overall revenue growth and maintain its position as a leader in AI chip technology.
NVIDIA is anticipated to remain on a high-growth trajectory. The Zacks Consensus Estimate for the company’s fiscal 2026 revenues indicates a year-over-year surge of 55.5%.
Micron vs. NIVDIA: Earnings Estimate Trend
The Zacks Consensus Estimate for Micron’s fiscal 2026 earnings has been revised upward by 6.4% to $13.05 per share over the past 30 days. This indicates a year-over-year increase of 62.4%.
Image Source: Zacks Investment Research
The consensus mark for NVIDIA’s fiscal 2026 earnings has also been revised upward over the past seven days by 1% to $4.32 per share. However, the estimated year-over-year growth of 44.5% is lower than that of Micron’s.
Image Source: Zacks Investment Research
MU vs. NVDA: Stock Performance and Valuation
Both stocks have surged this year as AI adoption accelerates. Year to date, shares of Micron and NVIDIA have soared 40.8% and 27.1%, respectively.
YTD Price Return Performance
Image Source: Zacks Investment Research
Despite the robust upswing in the share price, Micron’s forward 12-month price-to-sales (P/S) multiple of 3.58 is significantly lower than NVIDIA’s 17.4. This reflects that Micron offers investors a cheaper entry point into AI hardware with significant room for earnings expansion as memory demand accelerates.
Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Final Thoughts: Micron Is the Better Buy Right Now
Both Micron and NVIDIA are positioned to gain from AI. However, MU’s higher EPS growth projection and lower valuation P/S multiple than NVDA make it a better investment choice right now.
Currently, Micron sports a Zacks Rank #1 (Strong Buy), making the stock a must-pick compared with NVIDIA, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.