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Micron vs. Lam Research: Which Stock Has Better Upside Potential?
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Key Takeaways
Micron Technology benefits from rising AI-driven memory demand and strong fiscal 2026 growth estimates.
LRCX posts solid revenue and EPS gains as its tools support next-gen chip production for major manufacturers.
Micron trades at a lower forward P/E than Lam Research and has outperformed LRCX in year-to-date returns.
Micron Technology, Inc. (MU - Free Report) and Lam Research Corporation (LRCX - Free Report) stand at the center of the semiconductor boom, but they operate in very different areas. Micron Technology focuses on making memory chips like DRAM and NAND, while Lam Research supplies the advanced machines used to build chips, especially for newer technologies that power artificial intelligence (AI) and high-performance computing.
Both companies are benefiting from the rise of AI, but their business models, risk profiles, and long-term outlooks differ. Let’s break down how each company is performing and which one appears to be the better investment right now.
The Case for Micron Technology Stock
Micron Technology sits at the heart of several transformative tech trends. The company’s exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions it for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron Technology’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 Technology has created a more stable revenue base by shifting its focus from the more volatile consumer electronics market toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the fourth quarter of fiscal 2025, its revenues and non-GAAP earnings per share (EPS) soared 46% and 157%, respectively, year over year.
Micron Technology, Inc. Price, Consensus and EPS Surprise
Micron Technology 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 Technology is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, the company’s newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with expansion in 2027, underscores its commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron Technology’s growth over the long run. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS indicates a year-over-year improvement of 62% and 109%, respectively.
The Case for Lam Research Stock
Lam Research is capitalizing on AI trends. It builds the tools chipmakers need to manufacture next-generation semiconductors, including high-bandwidth memory (HBM) and chips used in advanced packaging. These technologies are vital for powering AI and cloud data centers.
Lam Research’s products are not only critical but also innovative. For example, its ALTUS ALD tool uses molybdenum to improve speed and efficiency in chip production. Another product, the Aether platform, helps chipmakers achieve higher performance and density. These are essential capabilities as demand for advanced AI chips increases.
In 2024, Lam Research’s shipments for gate-all-around nodes and advanced packaging exceeded $1 billion, and management expects this figure to triple to more than $3 billion in 2025. Additionally, the industry’s migration to backside power distribution and dry-resist processing presents growth opportunities for LRCX’s cutting-edge fabrication solutions.
These trends are aiding Lam Research’s financial performance. The company has demonstrated consistent execution, maintaining quarterly revenues of more than $5 billion for the past two consecutive quarters, reflecting solid demand from leading chipmakers such as TSMC and Samsung.
Lam Research’s strength lies in its leadership in etch and deposition equipment, which are essential for high-performance computing and AI chip production. In the first quarter of fiscal 2026, the company reported revenues of $5.32 billion, up 28% year over year, and non-GAAP EPS of $1.26, representing a 46.5% rise.
Lam Research Corporation Price, Consensus and EPS Surprise
MU vs. LRCX: Which Has the Stronger Growth Outlook?
Both companies will benefit from the surging demand for AI chips, but Micron Technology’s growth profile appears stronger in the near term. The Zacks Consensus Estimate for MU’s current fiscal-year 2026 revenues and earnings per share (EPS) indicates a year-over-year surge of 62% and 109.4%, respectively. For fiscal 2027, the top and bottom lines are projected to grow 12.3% and 23.5%, respectively.
By contrast, Lam Research’s fiscal 2026 estimates point to more modest 14% revenue growth and a 15.7% EPS increase. For fiscal 2027, the top and bottom lines are projected to rise 20.6% and 16.2%, respectively.
Valuation: Micron Technology Trades at a Discount
When comparing valuations, Lam Research currently trades at a higher forward 12-month price-to-earnings (P/E) multiple of 30.93 compared to Micron Technology’s 12.86. This suggests investors are paying a larger premium for LRCX stock, even though its forward earnings growth profile is significantly lower than Micron Technology’s.
Image Source: Zacks Investment Research
Comparing the two stocks’ price performance, Micron Technology has soared 181.9% year to date, outperforming Lam Research’s gain of 119.7%.
Image Source: Zacks Investment Research
Final Thought: MU Has Better Upside Potential
Both Micron Technology and Lam Research are positioned to gain from AI. However, MU’s higher EPS growth projection and lower valuation P/E multiple than LRCX make it a better investment choice right now.
Image: Bigstock
Micron vs. Lam Research: Which Stock Has Better Upside Potential?
Key Takeaways
Micron Technology, Inc. (MU - Free Report) and Lam Research Corporation (LRCX - Free Report) stand at the center of the semiconductor boom, but they operate in very different areas. Micron Technology focuses on making memory chips like DRAM and NAND, while Lam Research supplies the advanced machines used to build chips, especially for newer technologies that power artificial intelligence (AI) and high-performance computing.
Both companies are benefiting from the rise of AI, but their business models, risk profiles, and long-term outlooks differ. Let’s break down how each company is performing and which one appears to be the better investment right now.
The Case for Micron Technology Stock
Micron Technology sits at the heart of several transformative tech trends. The company’s exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions it for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron Technology’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 Technology has created a more stable revenue base by shifting its focus from the more volatile consumer electronics market toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the fourth quarter of fiscal 2025, its revenues and non-GAAP earnings per share (EPS) soared 46% and 157%, respectively, year over year.
Micron Technology, Inc. Price, Consensus and EPS Surprise
Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote
Micron Technology 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 Technology is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, the company’s newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with expansion in 2027, underscores its commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron Technology’s growth over the long run. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS indicates a year-over-year improvement of 62% and 109%, respectively.
The Case for Lam Research Stock
Lam Research is capitalizing on AI trends. It builds the tools chipmakers need to manufacture next-generation semiconductors, including high-bandwidth memory (HBM) and chips used in advanced packaging. These technologies are vital for powering AI and cloud data centers.
Lam Research’s products are not only critical but also innovative. For example, its ALTUS ALD tool uses molybdenum to improve speed and efficiency in chip production. Another product, the Aether platform, helps chipmakers achieve higher performance and density. These are essential capabilities as demand for advanced AI chips increases.
In 2024, Lam Research’s shipments for gate-all-around nodes and advanced packaging exceeded $1 billion, and management expects this figure to triple to more than $3 billion in 2025. Additionally, the industry’s migration to backside power distribution and dry-resist processing presents growth opportunities for LRCX’s cutting-edge fabrication solutions.
These trends are aiding Lam Research’s financial performance. The company has demonstrated consistent execution, maintaining quarterly revenues of more than $5 billion for the past two consecutive quarters, reflecting solid demand from leading chipmakers such as TSMC and Samsung.
Lam Research’s strength lies in its leadership in etch and deposition equipment, which are essential for high-performance computing and AI chip production. In the first quarter of fiscal 2026, the company reported revenues of $5.32 billion, up 28% year over year, and non-GAAP EPS of $1.26, representing a 46.5% rise.
Lam Research Corporation Price, Consensus and EPS Surprise
Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote
MU vs. LRCX: Which Has the Stronger Growth Outlook?
Both companies will benefit from the surging demand for AI chips, but Micron Technology’s growth profile appears stronger in the near term. The Zacks Consensus Estimate for MU’s current fiscal-year 2026 revenues and earnings per share (EPS) indicates a year-over-year surge of 62% and 109.4%, respectively. For fiscal 2027, the top and bottom lines are projected to grow 12.3% and 23.5%, respectively.
By contrast, Lam Research’s fiscal 2026 estimates point to more modest 14% revenue growth and a 15.7% EPS increase. For fiscal 2027, the top and bottom lines are projected to rise 20.6% and 16.2%, respectively.
Valuation: Micron Technology Trades at a Discount
When comparing valuations, Lam Research currently trades at a higher forward 12-month price-to-earnings (P/E) multiple of 30.93 compared to Micron Technology’s 12.86. This suggests investors are paying a larger premium for LRCX stock, even though its forward earnings growth profile is significantly lower than Micron Technology’s.
Image Source: Zacks Investment Research
Comparing the two stocks’ price performance, Micron Technology has soared 181.9% year to date, outperforming Lam Research’s gain of 119.7%.
Image Source: Zacks Investment Research
Final Thought: MU Has Better Upside Potential
Both Micron Technology and Lam Research are positioned to gain from AI. However, MU’s higher EPS growth projection and lower valuation P/E multiple than LRCX make it a better investment choice right now.
Currently, Micron Technology sports a Zacks Rank #1 (Strong Buy), making the stock a must-pick compared with LRCX, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.