- NVDA
- MU
Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU) are two of the biggest companies in the world. Nvidia holds the top spot, sitting at a $5.3 trillion valuation. Micron currently sits at 13th place worldwide, with a $1.1 trillion valuation. These companies are also two of the biggest beneficiaries of the artificial intelligence (AI) build-out, and with that expected to ramp up again in 2027, these two are in a prime position to benefit.
But which stock stands to benefit more? Let’s take a look at these two and see which stock makes the most sense for your investment dollars.
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Nvidia is a Micron client
Nvidia and Micron are partners in the AI arms race. Micron makes memory chips, including DRAM memory that’s utilized inside Nvidia GPUs. Micron’s DRAM chips are also utilized in several other competitors’ products, and demand for these products continues to rise.
Nvidia forecasts that the big five AI hyperscalers will spend nearly $800 billion on data center capital expenditures during 2026. Next year, that figure is projected to rise to $1.3 trillion. That’s a lot of GPUs from Nvidia, filled with memory chips from Micron. There is huge demand for each company’s product, but there is a stark difference in the long-term demand curve for each.
Part of the reason Micron is among the best-performing stocks in the market this year is the supply state of the memory chip industry. Currently, demand outpaces supply, which is causing a price crunch in the memory chip market. This is causing Micron’s downstream clients to pay more for the product, while Micron makes a fortune on higher prices. This effect will last until more supply is available or demand falls. With demand continuing to rise, the only logical path is for supply to increase, and Micron is doing so by building more production facilities, which are likely to come online sometime in mid-2027 and throughout 2028. However, Micron’s management team has told investors that they shouldn’t expect the tightness in the memory chip market to subside until 2028.
That places Micron in the driver’s seat through 2027, giving it the edge over Nvidia.
Nvidia and Micron both expect huge growth next year
During Nvidia’s latest conference call, it made the bombshell announcement that it expects 70% revenue growth next year, far exceeding analyst expectations. Micron hasn’t given any forward guidance, but with the memory chip market still constrained, it’s likely to be another banner year. Wall Street analysts estimate Micron will put up 88% growth, edging out Nvidia.
