Nvidia Outshines Micron as AI Chip Stocks Continue to Soar
Nvidia (NVDA) and Micron Technology (MU) are two prominent players in the artificial intelligence (AI) semiconductor space. Between 2023 and 2025, Nvidia's stock went parabolic, surging by 1,180% to become the world's most valuable company by market cap on a split-adjusted basis.
Micron Technology also saw significant growth, rising 239% in 2025 and another 242% so far this year, as memory chips became scarce due to high bandwidth memory (HBM) shortages. Nvidia has acknowledged the importance of memory, increasing its supplier commitments by $119 billion to a total of $279 billion through fiscal 2032.
Nvidia's dominance in AI chip stacks is not limited to GPUs; it also owns the whole AI factory, from compute and networking to software and customers that rent capacity. The company has invested heavily in partnerships with other companies, including Marvell Technology, Coherent, Lumentum, Nokia, Nebius, and CoreWeave.
Nvidia's forward price-to-earnings (P/E) ratio is around 23, a discount to prior chapters in the AI revolution. Micron looks cheaper by comparison on a near-term forward earnings multiple due to its exploding profitability and earnings. However, Nvidia's diversified business model and position as a critical supplier across the entire AI supply chain make it the better stock to buy and hold over the next five years.