Micron vs. Nvidia: Why Two Top Analysts See More Upside in NVDA?

Amid the semiconductor sector’s fierce competition, Micron Technology MU -3.78% ▼ and Nvidia NVDA -1.02% ▼ stand out as powerhouse players. Nvidia has dominated headlines and portfolios with its AI-fueled rocket ride, while Micron is quietly carving a niche in memory chips amid booming data center demand. As investors weigh explosive growth against steady value, analysts’ ratings and price targets reveal Wall Street’s clearer favorite.

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Rosenblatt: NVDA Leads in Training, Inference, Agentic/Physical AI

Rosenblatt Securities’ top analyst Kevin Cassidy maintained a Buy rating on both, but he sees more upside in Nvidia than Micron over the next twelve months. He raised NVDA from $300 to $325, implying 82% upside potential, and lifted Micron from $500 to $600, suggesting 35% upside potential.

Cassidy was impressed by Micron’s strong results with DRAM and NAND prices up 65% and 77% from last quarter, with guidance pointing to more price hikes ahead. He expects demand to outpace supply through 2027, as new capacity will not arrive until mid-2027 for DRAM and late 2028 for NAND. New Strategic Customer Agreements (SCAs) lock in long-term commitments, unlike past short-term deals. Cassidy remains cautious about boom-bust cycles as new supply ramps up, but still raised targets at 6x forward earnings due to higher yearly estimates.

After Nvidia’s GTC conference, Cassidy updated his model to include over $1 trillion in Blackwell/Rubin revenue from 2025-2027, plus $25 billion more from Groq LPU, Vera, and Rubin Ultra in late 2028. These adjustments lifted his FY28 revenue estimate to $550 billion and non-GAAP EPS to $13. Cassidy raised his 12-month price target to a conservative 25x FY28 EPS. At 25x FY28 EPS, he urges buying NVDA for leadership in inference, agentic, and physical AI. Moreover, he sees revenue mix shifting from 60/40 hyperscalers/others toward more enterprise, sovereign, and industrial sources.

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BofA: Declining GMs Signal Memory-Cycle Volatility

Bank of America Securities’ five-star analyst Vivek Arya also reiterated Buy ratings, but remains cautious on Micron shares due to concerns around memory chip cycles. He lifted MU’s price target from $400 to $500, implying 12.5% upside, while maintaining NVDA’s $300 price target (68% upside).

Arya forecasts a strong memory cycle through 2027. He expects prices to stay high due to memory’s role in AI tokenomics, new 5-year supply contracts (SCAs) beyond usual 1-year deals, and limited factory space until 2027-28. He boosted Micron’s FY26/27/28 EPS estimates by 70-100%. Yet, he remains wary of certain risks: spot prices are stabilizing, gross margins peaking at 81% this quarter, and falling margins often trigger volatility in memory cycles. Arya sees more upside in equipment makers like Applied Materials AMAT +2.21% ▲ and Lam Research LRCX +4.13% ▲ from capex.

Arya highlighted that Nvidia raised its data-center sales outlook from $500 billion in 2025-26 to over $1 trillion in 2025-27. This covers GPU systems, including CPUs and networking, but excludes new standalone Vera CPUs and LPX solutions, which could add extra revenue. The $1 trillion matches Street expectations of roughly $970 billion over three years, just like their prior $500 billion view aligned with $450 billion forecasts. Nvidia expects 60% of spending to come from top 5 hyperscalers, 40% from enterprise, industrial, sovereign, etc.

Which Chip Stock Do Analysts Prefer?

Using TipRanks Stock Comparison Tool, we determined that both Nvidia and Micron earn Wall Street’s Strong Buy consensus rating due to their key roles in the AI revolution. However, NVDA stock offers higher upside potential over the next twelve months.

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