NVIDIA Corporation NVDA and Micron Technology, Inc. MU are key players in the artificial intelligence (AI) semiconductor ecosystem, benefiting from surging demand for data center and AI-driven computing. NVIDIA builds the graphics processing units (GPUs) that perform heavy computing tasks, while Micron provides the advanced memory chips that store and move the massive amounts of data required for AI.
Though the two companies are well-positioned to benefit from surging demand for AI and high-performance computing, their financial performance, growth strategies and valuations offer different risk-reward profiles for investors considering semiconductor exposure. Let’s see which stock is a better investment option right now.
NVIDIA remains the backbone of the AI boom, with its GPUs powering everything from cloud data centers to self-driving vehicles. The company continues to dominate the AI infrastructure market, driven by explosive demand from cloud providers and enterprises. In the third quarter of fiscal 2026, NVIDIA’s revenues surged 62% year over year to $57 billion, while non-GAAP earnings per share (EPS) jumped 60% to $1.30.
NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote
The company’s new GPU architectures, Hopper 300 and Blackwell, are rapidly gaining adoption as customers race to expand AI capabilities. The Blackwell Ultra and upcoming Vera Rubin platforms could further cement NVIDIA’s leadership as the AI hardware race intensifies.
NVIDIA’s most powerful growth engine continues to be its Data Center business. In the third quarter of fiscal 2026, the segment generated $51.22 billion in revenues, representing 89.8% of total sales. This marked a staggering 66% year-over-year increase and 25% sequential growth.
The robust performance was mainly driven by higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications.
NVIDIA’s partnership with OpenAI, which involves the construction of massive AI data centers powered by NVIDIA systems, is expected to boost long-term demand for its GPUs. The deal reinforces NVIDIA’s position as the dominant supplier of AI chips worldwide.
Micron Technology 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 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 yielding positive results. Micron Technology 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, a critical trait in the semiconductor space. In the fourth quarter of fiscal 2025, its revenues and non-GAAP earnings per share (EPS) soared 46% and 157%, respectively, year over year.
In the first quarter of fiscal 2026, Micron Technology’s revenues jumped 57% year over year to $13.64 billion, while non-GAAP EPS rose 167% to $4.78. The top and bottom lines surpassed the Zacks Consensus Estimate by 7.26% and 22.25%, respectively.
Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote
Micron Technology is also riding on a strong wave in high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest for their superior energy efficiency and bandwidth, which are ideal for AI workloads. The company has noted that its supply of HBM3E and next-generation HBM4 chips for the calendar year 2026 has already been sold out.
Micron Technology is a core HBM supplier for NVIDIA’s GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Its under-construction HBM advanced packaging facility in Singapore, set to launch this year with further expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.
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 EPS indicates a year-over-year surge of 94.7% and 297.5%, respectively. On the other hand, NVIDIA’s fiscal 2026 estimates imply 92.9% revenue growth and a 55.9% EPS increase.
Moreover, the earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward MU.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Comparing the two stocks’ price performance, Micron Technology has surged 243% over the past year, outperforming NVIDIA’s gain of 35.2%.
Image Source: Zacks Investment Research
When comparing valuations, NVIDIA currently trades at a higher forward 12-month price-to-earnings (P/E) multiple of 25.78 compared to Micron Technology’s 9.84. This suggests investors are paying a larger premium for NVDA stock, even though its forward earnings growth profile is significantly lower than MU’s.
Image Source: Zacks Investment Research
Both Micron Technology and NVIDIA are positioned to gain from AI. However, MU’s higher EPS growth projection and lower valuation P/E 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.
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This article originally published on Zacks Investment Research (zacks.com).