Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026

Core Insights - Micron Technology, Inc. outperformed NVIDIA Corporation in 2022, with a stock increase of 239.1% compared to NVIDIA's 38.8% [1] - The demand for Micron's high-bandwidth memory (HBM) chips is driven by the AI infrastructure surge, leading to a significant performance boost for the company [2] Financial Performance - Micron reported revenues of $13.64 billion for the first quarter of fiscal 2026, marking a 56.8% year-over-year increase, surpassing analysts' expectations of $12.88 billion [3][11] - All business segments of Micron experienced revenue growth, contributing to a non-GAAP net income of $5.48 billion, or $4.78 per share, exceeding projections of $3.94 [4] - For the second quarter of fiscal 2026, Micron anticipates revenues between $18.3 billion and $19.1 billion, with earnings per share projected at $8.22 to $8.62 [5][11] Market Position and Outlook - NVIDIA's revenues for the third quarter of fiscal 2026 reached $57 billion, a 62% increase year-over-year, driven by strong demand for its Blackwell chips and cloud GPUs [6][11] - NVIDIA projects fourth-quarter fiscal 2026 revenues around $65 billion, indicating continued growth potential [7] - Both Micron and NVIDIA are positioned for growth in 2026, with Micron benefiting from HBM chip demand and NVIDIA from Blackwell chip sales and data center investments [9] Valuation and Risks - Micron's shares are trading near an all-time high, suggesting limited room for error, while NVIDIA's forward price-to-earnings ratio of 39.68 indicates market expectations for stronger growth compared to Micron's 10.43 [10]