Micron Technology (MU) has reported a staggering 253.9% gain this year, outperforming NVIDIA Corporation (NVDA), which saw a rise of only 20.7%. This performance reflects Micron’s recent revenue growth driven by strong demand for high-bandwidth memory (HBM) chips used in AI servers.
Micron’s fiscal third quarter revenue reached $41.46 billion, a significant increase from $9.3 billion a year ago. The company expects revenues to rise to approximately $50 billion in the fiscal fourth quarter of 2026, with gross margins projected to be around 86%. Meanwhile, NVIDIA reported fiscal first-quarter revenues of $81.6 billion, a year-over-year increase of 85%, largely due to the growing demand for their AI chips, but their future growth may face challenges from market fluctuations.
In terms of valuation, Micron trades at a forward price/earnings ratio of 13.7, compared to NVIDIA’s 24.76. This suggests Micron could present a more attractive investment opportunity, particularly given the increasing constraints in HBM supply, which may enhance Micron’s profitability.
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