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

Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc. MU outperformed Wall Street’s darling NVIDIA Corporation NVDA last year (+239.1% vs +38.8%). Can Micron repeat the feat, or will this year see NVIDIA having the upper hand? Let’s find out.  Micron Soars on AI-Driven HBM Chip Demand Micron’s high-bandwidth memory (HBM) chips excel at handling large volumes of data while minimizing power consumption. Currently, these HBM chips are in short supply due to the AI infrastructure surge, which is fueling high demand and contributing significantly to Micron’s recent strong performance. Micron reported revenues of $13.64 billion in first-quarter fiscal 2026, up 56.8% year over year, according to investors.micron.com.  This exceeded analysts’ expectations of roughly $12.88 billion, reinforcing confidence that demand for Micron’s products remains strong.  All of Micron’s business segments saw revenue growth in the fiscal first quarter, including its core cloud memory business unit. This robust revenue performance helped Micron post non-GAAP net income of $5.48 billion, or $4.78 per share, above analysts’ projections of $3.94. Additionally, fueled by AI-driven demand for HBM chips, Micron expects even stronger results for second-quarter fiscal 2026, with revenues of $18.3–$19.1 billion and earnings per share (EPS) of $8.22–$8.62. The company’s solid cash flow of $3.9 billion in the fiscal first quarter also provides Micron with the funds to support growth initiatives. NVIDIA Rides AI Momentum Into 2026 Strong demand for the CUDA software platform and cutting-edge Blackwell chips has driven NVIDIA’s recent quarterly performance. NVIDIA’s revenues for the third-quarter fiscal 2026 came in at $57 billion, up 62% year over year and 22% sequentially, according to investor.nvidia.com.NVIDIA’s founder and CEO, Jensen Huang, said that “Blackwell sales are off the charts, and cloud GPUs are sold out”. The company remains optimistic about future growth, projecting fourth-quarter fiscal 2026 revenues around $65 billion, with a plus or minus 2% margin.  Furthermore, the company anticipates continued profitability growth as the Trump administration has approved NVIDIA to sell H200 AI chips to select customers in China. Benefiting from a competitive edge in the AI hardware market and a likely increase in global data center capital expenditures, NVIDIA is well-positioned for growth in 2026, with Jensen Huang at the helm. Micron or NVIDIA: Which AI Chip Stock Will Lead in 2026? No doubt, Micron is set to thrive in 2026, driven by higher demand for its HBM chips. Similarly, NVIDIA is set to expand, fueled by soaring Blackwell chip demand, record cloud GPU sales and a rise in global data center investments.  However, Micron’s shares are currently trading near an all-time high, leaving little room for error. This means any missed expectations could trigger a drop in Micron’s stock price. Moreover, NVIDIA’s forward price-to-earnings (P/E) ratio of 39.68 exceeds Micron’s 10.43, reflecting the market’s expectation of stronger growth for NVIDIA. Image Source: Zacks Investment ResearchConsequently, NVIDIA appears to be a more stable stock with greater growth potential in 2026. For now, both NVIDIA and Micron have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks