Micron Edges Out Nvidia in AI Build-Out
Nvidia (NVDA +1.34%) and Micron Technology (MU +3.92%) are two of the largest companies in the world, with Nvidia holding the top spot at a $5.3 trillion valuation and Micron ranking 13th at $1.1 trillion.
The two companies are key players in the artificial intelligence (AI) build-out, which is expected to ramp up again in 2027, benefiting both companies significantly.
Nvidia forecasts that the big five AI hyperscalers will spend nearly $800 billion on data center capital expenditures during 2026, rising to $1.3 trillion next year, with huge demand for Nvidia's GPUs and Micron's memory chips.
However, there is a stark difference in the long-term demand curve for each company, with Micron benefiting from the supply state of the memory chip industry.
The tightness in the memory chip market will last until 2028, giving Micron an edge over Nvidia through 2027.