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Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026
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Key Takeaways
Micron posted fiscal Q1 2026 revenue of $13.64B, up 56.8% year over year, driven by AI-related memory demand.
MU expects stronger Q2 2026 results, projecting $18.3-$19.1B in revenue and EPS of $8.22-$8.62.
NVIDIA posted $57B in fiscal Q3 2026 revenue as Blackwell chips and cloud GPUs sold out.
Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc. (MU - Free Report) outperformed Wall Street’s darling NVIDIA Corporation (NVDA - Free Report) last year (+239.1% vs +38.8%). Can Micron repeat the feat, or will this year see NVIDIA having the upper hand? Let’s find out.
Micron Soars on AI-Driven HBM Chip Demand
Micron’s high-bandwidth memory (HBM) chips excel at handling large volumes of data while minimizing power consumption. Currently, these HBM chips are in short supply due to the AI infrastructure surge, which is fueling high demand and contributing significantly to Micron’s recent strong performance.
Micron reported revenues of $13.64 billion in first-quarter fiscal 2026, up 56.8% year over year, according to investors.micron.com. This exceeded analysts’ expectations of roughly $12.88 billion, reinforcing confidence that demand for Micron’s products remains strong.
All of Micron’s business segments saw revenue growth in the fiscal first quarter, including its core cloud memory business unit. This robust revenue performance helped Micron post non-GAAP net income of $5.48 billion, or $4.78 per share, above analysts’ projections of $3.94.
Additionally, fueled by AI-driven demand for HBM chips, Micron expects even stronger results for second-quarter fiscal 2026, with revenues of $18.3–$19.1 billion and earnings per share (EPS) of $8.22–$8.62. The company’s solid cash flow of $3.9 billion in the fiscal first quarter also provides Micron with the funds to support growth initiatives.
NVIDIA Rides AI Momentum Into 2026
Strong demand for the CUDA software platform and cutting-edge Blackwell chips has driven NVIDIA’s recent quarterly performance. NVIDIA’s revenues for the third-quarter fiscal 2026 came in at $57 billion, up 62% year over year and 22% sequentially, according to investor.nvidia.com.
NVIDIA’s founder and CEO, Jensen Huang, said that “Blackwell sales are off the charts, and cloud GPUs are sold out”. The company remains optimistic about future growth, projecting fourth-quarter fiscal 2026 revenues around $65 billion, with a plus or minus 2% margin.
Furthermore, the company anticipates continued profitability growth as the Trump administration has approved NVIDIA to sell H200 AI chips to select customers in China. Benefiting from a competitive edge in the AI hardware market and a likely increase in global data center capital expenditures, NVIDIA is well-positioned for growth in 2026, with Jensen Huang at the helm.
Micron or NVIDIA: Which AI Chip Stock Will Lead in 2026?
No doubt, Micron is set to thrive in 2026, driven by higher demand for its HBM chips. Similarly, NVIDIA is set to expand, fueled by soaring Blackwell chip demand, record cloud GPU sales and a rise in global data center investments.
However, Micron’s shares are currently trading near an all-time high, leaving little room for error. This means any missed expectations could trigger a drop in Micron’s stock price. Moreover, NVIDIA’s forward price-to-earnings (P/E) ratio of 39.68 exceeds Micron’s 10.43, reflecting the market’s expectation of stronger growth for NVIDIA.
Image Source: Zacks Investment Research
Consequently, NVIDIA appears to be a more stable stock with greater growth potential in 2026. For now, both NVIDIA and Micron have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026
Key Takeaways
Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc. (MU - Free Report) outperformed Wall Street’s darling NVIDIA Corporation (NVDA - Free Report) last year (+239.1% vs +38.8%). Can Micron repeat the feat, or will this year see NVIDIA having the upper hand? Let’s find out.
Micron Soars on AI-Driven HBM Chip Demand
Micron’s high-bandwidth memory (HBM) chips excel at handling large volumes of data while minimizing power consumption. Currently, these HBM chips are in short supply due to the AI infrastructure surge, which is fueling high demand and contributing significantly to Micron’s recent strong performance.
Micron reported revenues of $13.64 billion in first-quarter fiscal 2026, up 56.8% year over year, according to investors.micron.com. This exceeded analysts’ expectations of roughly $12.88 billion, reinforcing confidence that demand for Micron’s products remains strong.
All of Micron’s business segments saw revenue growth in the fiscal first quarter, including its core cloud memory business unit. This robust revenue performance helped Micron post non-GAAP net income of $5.48 billion, or $4.78 per share, above analysts’ projections of $3.94.
Additionally, fueled by AI-driven demand for HBM chips, Micron expects even stronger results for second-quarter fiscal 2026, with revenues of $18.3–$19.1 billion and earnings per share (EPS) of $8.22–$8.62. The company’s solid cash flow of $3.9 billion in the fiscal first quarter also provides Micron with the funds to support growth initiatives.
NVIDIA Rides AI Momentum Into 2026
Strong demand for the CUDA software platform and cutting-edge Blackwell chips has driven NVIDIA’s recent quarterly performance. NVIDIA’s revenues for the third-quarter fiscal 2026 came in at $57 billion, up 62% year over year and 22% sequentially, according to investor.nvidia.com.
NVIDIA’s founder and CEO, Jensen Huang, said that “Blackwell sales are off the charts, and cloud GPUs are sold out”. The company remains optimistic about future growth, projecting fourth-quarter fiscal 2026 revenues around $65 billion, with a plus or minus 2% margin.
Furthermore, the company anticipates continued profitability growth as the Trump administration has approved NVIDIA to sell H200 AI chips to select customers in China. Benefiting from a competitive edge in the AI hardware market and a likely increase in global data center capital expenditures, NVIDIA is well-positioned for growth in 2026, with Jensen Huang at the helm.
Micron or NVIDIA: Which AI Chip Stock Will Lead in 2026?
No doubt, Micron is set to thrive in 2026, driven by higher demand for its HBM chips. Similarly, NVIDIA is set to expand, fueled by soaring Blackwell chip demand, record cloud GPU sales and a rise in global data center investments.
However, Micron’s shares are currently trading near an all-time high, leaving little room for error. This means any missed expectations could trigger a drop in Micron’s stock price. Moreover, NVIDIA’s forward price-to-earnings (P/E) ratio of 39.68 exceeds Micron’s 10.43, reflecting the market’s expectation of stronger growth for NVIDIA.
Image Source: Zacks Investment Research
Consequently, NVIDIA appears to be a more stable stock with greater growth potential in 2026. For now, both NVIDIA and Micron have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.