Key Points
-
Hedge fund billionaires Israel Englander and David Tepper sold Nvidia and bought Micron in the fourth quarter, but Wall Street now sees Nvidia as the more attractive stock.
-
Nvidia dominates the AI accelerators market, holding over 80% market share, while Micron reported a 167% increase in earnings, driven primarily by price hikes amid a supply shortage.
-
As of now, Nvidia’s stock has a median target price of $265, suggesting a 47% potential upside from its current price of $180; Micron’s target price stands at $450, indicating a 6% upside from $426.
In the fourth quarter, hedge fund managers Israel Englander and David Tepper shifted their investments by selling Nvidia (NASDAQ: NVDA) and acquiring Micron Technology (NASDAQ: MU). Despite this move, analysts are now favoring Nvidia, which holds a commanding position in the AI sector.
Recently, Nvidia reported revenue growth of 73%, reaching $68 billion, while Micron’s revenues climbed 56% to $13.6 billion. However, Micron’s impressive earnings growth was mainly due to a severe supply shortage impacting prices, raising concerns about sustainability. Current market analyses suggest that while Micron has performed well, Nvidia may offer a better investment opportunity moving forward.
