Why Micron Stock Could Outperform NVIDIA in 2025

Core Viewpoint - Micron Technology is gaining attention in the semiconductor sector, particularly in the context of artificial intelligence and data center growth, positioning itself as a potential investment opportunity beyond larger competitors like NVIDIA [1][3]. Group 1: Market Position and Performance - Micron has experienced a performance gap compared to leaders like NVIDIA, but recent price movements and increased trading activity suggest a shift may be underway [2]. - The company's market capitalization stands at approximately $156.7 billion, which provides it with significant room for growth compared to NVIDIA's $4.1 trillion valuation [4][5]. - In its recent earnings report, Micron posted Q2 2025 earnings per share (EPS) of $1.91, exceeding the consensus estimate of $1.57 by 22% [6]. Group 2: Trader Sentiment and Options Activity - Traders are showing high conviction in Micron's upcoming quarterly earnings, with over 206,000 call options purchased in early September, indicating expectations for further upside [7][9]. - The high volume of call options suggests that traders believe Micron is likely to reach new highs, especially as it trades near 98% of its 52-week high [9]. Group 3: Analyst and Institutional Confidence - Analysts are beginning to upgrade their outlook on Micron, with a 12-month price forecast averaging $151.76, indicating a moderate buy rating [10]. - J.P. Morgan's Harlan Sur has rated Micron as Overweight with a price target of $185, representing a potential upside of 32% from current levels [11]. - Institutional confidence is also growing, as Rafferty Asset Management increased its Micron holdings by 37.9%, now controlling a stake valued at $508.9 million [11].