Micron Is Quietly Outperforming NVIDIA - Don't Ignore It

Core Insights - The article highlights the emergence of Micron Technology, Inc. as a strong investment opportunity in the AI sector, particularly in comparison to NVIDIA Corporation, which has seen significant returns over the past five years [2]. Group 1: NVIDIA's Performance and Outlook - NVIDIA has delivered impressive quarterly results, consistently exceeding Wall Street expectations despite geopolitical challenges, driven by strong demand for its Blackwell chips and cloud GPUs [3]. - The easing of U.S.-China trade tensions and increased data center spending are expected to boost NVIDIA's sales, with projected revenues for fiscal Q4 2026 reaching nearly $65 billion, up from $57 billion in fiscal Q3 2026 [4]. Group 2: Micron's Growth and Demand - Micron is gaining attention due to strong demand for its high-bandwidth memory (HBM) chips, which are critical for AI infrastructure investments by data center operators and hyperscalers [5]. - The demand for Micron's HBM chips is expected to continue rising, with constrained supply likely enhancing profit margins and supporting growth, as indicated by CEO Sanjay Mehrotra [6]. - Micron's management anticipates fiscal Q2 2026 revenues between $18.3 billion and $19.1 billion, significantly higher than the $13.64 billion reported in Q1 fiscal 2026, with expectations for increased net income [7]. Group 3: Investment Potential of Micron - Micron's net profit margin of 28.2% surpasses the Computer - Integrated Systems industry's average of 14.3%, indicating strong growth potential [8]. - The company's forward price-to-earnings (P/E) ratio of 11.66 is below the industry average of 18.18, presenting an attractive buying opportunity [11]. - Micron's Zacks Consensus Estimate for earnings per share (EPS) is $32.9, suggesting a year-over-year growth of 204.3% [13]. - Micron currently holds a Zacks Rank 1 (Strong Buy), indicating strong investor interest [15].