Nvidia Stock vs. Micron Stock: Wall Street Says Buy One and Sell the Other

Key Points:

• Nvidia and Micron Technology have been major beneficiaries of the AI infrastructure boom in 2023, with stock gains of 1,320% and 1,940%, respectively, but Wall Street analysts view Nvidia as undervalued and Micron as overvalued.
• Nvidia, holding nearly 90% of AI accelerator sales, has a median target price of $300, suggesting a 44% upside from its current $208 share price, supported by strong Q1 financials and upcoming advanced products like the Vera Rubin superchip.
• Nvidia's AI infrastructure dominance is reinforced by its Grace Blackwell superchip and the forthcoming Vera Rubin chip, which is expected to be significantly more efficient and widely adopted, positioning Nvidia for long-term growth in a market projected to reach $4 trillion by 2030.
• Micron, with a median target price implying an 8% downside from its current $1,034 share price, benefits from strong sales growth driven by price increases amid supply shortages, but faces challenges due to its commodity-like memory products and competition from Samsung and SK Hynix.
• The memory chip industry’s cyclical nature and expected peak in 2028 pose risks for Micron, whose adjusted earnings growth forecast of 13% through fiscal 2029 appears insufficient to justify its high valuation of 48 times earnings.