Nvidia vs. Micron: The AI Revolution Is Big Enough for Both. Here’s the Better Buy.
- MU
- NVDA
Nvidia (NASDAQ: NVDA) and Micron (NASDAQ: MU) each have been playing key roles in the artificial intelligence (AI) revolution. Nvidia is the maker of the logic chip that powers the “thinking” of AI models, while Micron makes the memory and storage solutions that are also essential in the training and use of AI.
Investors have recognized the importance of these companies and their products and have piled into their shares. Nvidia’s gains started earlier than those of Micron, back in 2023, and have accelerated over the past two years. Micron climbed somewhat back then but truly took off this year. Over the past five years, Nvidia has advanced more than 800%, while Micron has soared 1,200%.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger.Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout.Continue »
The AI revolution is big enough for both of these market titans — but which is the better buy? Let’s find out.
The case for Nvidia
Nvidia dominates the AI chip market, selling the graphics processing units (GPUs) that power unavoidable tasks such as the training and inference of models. The company isn’t alone in the market, but it is the leader thanks to its early entry, the speed of its GPUs, and its commitment to innovation to remain ahead of rivals.
All of this has translated into eye-popping earnings growth over the past few years. Nvidia’s revenue and profit have marched higher, climbing in the double and triple digits to record levels. In the latest period, for example, revenue soared 106% to $96 billion, while net income jumped 126% to $59 billion.
Though Nvidia is best known for its GPUs, the company’s work doesn’t stop here. It has created complete systems, including networking tools and enterprise software, and developed platforms to serve specific industries like healthcare and robotics. The tech giant has also been growing its presence through acquisitions as we can see through its plan to buy open-
As the AI focus transitions from the training of models to widespread use of AI in the real world, Nvidia is well positioned to benefit and continue delivering solid revenue gains.
The case for Micron
Micron has served the AI market in its early days, for the training of models, but the greater revenue opportunity is happening now and may continue well into the future. As mentioned, the company makes the memory and storage needed for various AI tasks.
