Banking on the factitious intelligence (AI) growth, Sanjay Mehrotra-led Micron Know-how, Inc. MU outperformed Wall Road’s darling NVIDIA Company NVDA final 12 months (+239.1% vs +38.8%). Can Micron repeat the feat, or will this 12 months see NVIDIA having the higher hand? Let’s discover out.
Micron Soars on AI-Pushed HBM Chip Demand
Micron’s high-bandwidth reminiscence (HBM) chips excel at dealing with massive volumes of knowledge whereas minimizing energy consumption. At present, these HBM chips are in brief provide because of the AI infrastructure surge, which is fueling excessive demand and contributing considerably to Micron’s current robust efficiency.
Micron reported revenues of $13.64 billion in first-quarter fiscal 2026, up 56.8% 12 months over 12 months, in accordance with buyers.micron.com. This exceeded analysts’ expectations of roughly $12.88 billion, reinforcing confidence that demand for Micron’s merchandise stays robust.
All of Micron’s enterprise segments noticed income progress within the fiscal first quarter, together with its core cloud reminiscence enterprise unit. This sturdy income efficiency helped Micron put up non-GAAP web revenue of $5.48 billion, or $4.78 per share, above analysts’ projections of $3.94.
Moreover, fueled by AI-driven demand for HBM chips, Micron expects even stronger outcomes for second-quarter fiscal 2026, with revenues of $18.3–$19.1 billion and earnings per share (EPS) of $8.22–$8.62. The corporate’s stable money movement of $3.9 billion within the fiscal first quarter additionally offers Micron with the funds to assist progress initiatives.
NVIDIA Rides AI Momentum Into 2026
Robust demand for the CUDA software program platform and cutting-edge Blackwell chips has pushed NVIDIA’s current quarterly efficiency. NVIDIA’s revenues for the third-quarter fiscal 2026 got here in at $57 billion, up 62% 12 months over 12 months and 22% sequentially, in accordance with investor.nvidia.com.
NVIDIA’s founder and CEO, Jensen Huang, mentioned that “Blackwell gross sales are off the charts, and cloud GPUs are offered out”. The corporate stays optimistic about future progress, projecting fourth-quarter fiscal 2026 revenues round $65 billion, with a plus or minus 2% margin.
Moreover, the corporate anticipates continued profitability progress because the Trump administration has authorized NVIDIA to promote H200 AI chips to pick prospects in China. Benefiting from a aggressive edge within the AI {hardware} market and a probable improve in international information middle capital expenditures, NVIDIA is well-positioned for progress in 2026, with Jensen Huang on the helm.
Micron or NVIDIA: Which AI Chip Inventory Will Lead in 2026?
Little question, Micron is ready to thrive in 2026, pushed by increased demand for its HBM chips. Equally, NVIDIA is ready to develop, fueled by hovering Blackwell chip demand, document cloud GPU gross sales and an increase in international information middle investments.
Nonetheless, Micron’s shares are at present buying and selling close to an all-time excessive, leaving little room for error. This implies any missed expectations might set off a drop in Micron’s inventory value. Furthermore, NVIDIA’s ahead price-to-earnings (P/E) ratio of 39.68 exceeds Micron’s 10.43, reflecting the market’s expectation of stronger progress for NVIDIA.
Picture Supply: Zacks Funding Analysis
Consequently, NVIDIA seems to be a extra secure inventory with higher progress potential in 2026. For now, each NVIDIA and Micron have a Zacks Rank #1 (Robust Purchase). You’ll be able to see the whole listing of at this time’s Zacks Rank #1 shares right here.
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Micron Know-how, Inc. (MU) : Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
