Elevated spending by hyperscalers and artificial intelligence (AI) startups on AI infrastructure continues to drive demand for many companies, such as Micron Technology (MU) and Nvidia (NVDA). Here, we will use TipRanks’ Stock Comparison Tool to place Micron and Nvidia against each other to find the “Strong Buy” AI stock that has the potential to deliver higher upside, according to analysts.
Claim 55% Off TipRanks
Forget margin or options. Here's how the pros trade NVDA
Nvidia (NASDAQ:NVDA) Stock
Despite concerns about growing competition, Nvidia continues to dominate the AI GPU (graphics processing unit) market. After experiencing strong demand for its GPUs for training large language models, the company is now geared up to capitalize on massive opportunities in the AI inference market.
Nvidia CEO Jensen Huang recently announced that the company expects over $1 trillion in cumulative purchase orders for its Blackwell and next-generation Vera Rubin AI chip platforms through 2027, twice the previous forecast of $500 billion. While NVDA stock has risen only 6% year-to-date amid certain investor concerns, macro pressures, and geopolitical tensions, Wall Street analysts remain bullish on Nvidia due to continued AI-driven demand and several strategic deals.
Is NVDA Stock a Buy, Sell, or Hold?
Recently, Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $300, calling it a top sector pick. Interestingly, the 5-star analyst thinks that with Nvidia likely done with most of its ecosystem investments, the company can start enhancing shareholder returns. Arya expects Nvidia to generate more than $400 billion in free cash flow (FCF) in 2026–2027, nearly equal to the combined FCF of Apple (AAPL) and Microsoft (MSFT).
Still, the analyst noted that NVDA trades at about 30% discounted market cap/FCF multiple as investors are concerned about the sustainability of its growth and capital allocation. Overall, Arya believes that enhanced cash returns could indicate durability, widen the shareholder base, and help address the valuation gap.
With 40 Buys, one Hold, and one Sell, Wall Street has a Strong Buy consensus rating on Nvidia stock. The average NVDA stock price target of $274.38 indicates 38.3% upside potential.
Micron Technology (NASDAQ:MU) Stock
Micron Technology stock has rallied 90% year-to-date and more than 570% over the past year, driven by the robust demand for memory solutions, mainly high-bandwidth memory, amid the ongoing AI boom. Moreover, the company is benefiting from high memory pricing due to tight industry supply.
While some analysts are concerned about the cyclical nature of the memory business, most expect the ongoing strength in Micron’s demand and pricing to persist amid supply constraints and elevated spending by hyperscalers and AI companies.
Is MU a Good Stock to Buy Right Now?
D.A. Davidson analyst Gil Luria initiated coverage of Micron stock with a Buy rating and a Street-high price target of $1,000, saying that AI is “creating a longer-than-usual memory cycle,” driving pricing and demand higher. Luria contends that the market is still viewing the ongoing memory cycle through the lens of prior downturns and underestimating the robust demand, especially relative to the broader semiconductor sector.
Furthermore, Luria noted the rise of multi-year strategic customer agreements (SCAs), with Micron emerging as the first memory supplier to announce a five-year supply deal in March. He added that the transition from one-year contracts to multi-year deals significantly alters the demand visibility and pricing stability for memory providers. “We are not arguing that there isn’t a cycle, just that the duration and extent of the cycle may not be priced in properly,” said Luria.
Overall, Wall Street has a Strong Buy consensus rating on Micron stock based on 27 Buys and three Holds. The average MU stock price target of $574.67 indicates 6% upside potential from current levels.
Conclusion
Wall Street is bullish on both Micron and Nvidia, backed by AI-led demand for their products. That said, currently, analysts see more upside potential in Nvidia than in Micron, following the latter’s stellar year-to-date rally.