Micron vs. NVIDIA: Which AI Chip Stock Is the Better Buy Now?
📈 Micron reported Q3 fiscal 2026 revenues of $41.46 billion, representing a 346% year-over-year increase.
💰 Non-GAAP earnings per share for Micron surged to $25.11 in the latest quarter compared to $1.91 in the prior year.
🔋 Micron has sold out its HBM supply for calendar 2026 with significant 2027 production committed through long-term customer agreements.
🚀 Analyst consensus estimates forecast a 91.4% revenue increase and 113.7% EPS growth for fiscal 2027.
💵 Micron trades at a forward P/E multiple of 6.29, significantly lower than NVIDIA's 20.54.
🏆 The stock holds a Zacks Rank #1 (Strong Buy) rating according to the analysis.
Bullish Signals
- Micron revenues soared 346% year over year to $41.46 billion in the third quarter of fiscal 2026.
- Non-GAAP EPS surged to $25.11 from $1.91 in the year-ago quarter, demonstrating massive profitability growth.
- The company has sold out its HBM supply for calendar 2026 with significant 2027 production already committed.
- Analyst consensus estimates indicate a projected 91.4% revenue increase and 113.7% EPS growth for fiscal 2027.
- Micron holds a Zacks Rank #1 (Strong Buy) rating, indicating strong analyst confidence in the stock.
Full Analysis
Micron Technology (MU) is highlighted as a compelling investment opportunity driven by surging demand for high-bandwidth memory (HBM) and storage essential for AI systems. The company reported exceptional financial results in its third quarter of fiscal 2026, with revenues soaring 346% year over year to $41.46 billion and non-GAAP EPS jumping to $25.11 from $1.91 a year prior.
This growth is fueled by major cloud providers like Amazon, Microsoft, Alphabet, and Meta investing heavily in AI infrastructure, expected to reach around $700 billion in capital expenditures for 2026. Micron has secured its competitive position through technological leadership, having already sold out its HBM supply for the calendar year 2026 with significant 2027 production committed via long-term agreements.
Analysts project continued explosive growth, forecasting a 91.4% increase in fiscal 2027 revenues and an 113.7% rise in non-GAAP EPS. The article concludes that Micron offers a superior risk-reward profile compared to NVIDIA today due to its lower valuation multiple of 6.29 versus NVIDIA's 20.54, combined with strong earnings momentum and a Zacks Rank #1 Strong Buy rating.
