Wall Street Analysts Picks Nvidia Over Micron: Here’s Why - BeInCrypto

Wall Street analysts have drawn a clear distinction between two key semiconductor stocks in the AI sector, generally favoring NVIDIA over Micron Technology. At current prices, analysts see NVIDIA’s st... Read original →

The Wall Street valuation gap between NVIDIA and Micron reflects a structural re-rating driven by AI’s computational architecture shift. NVIDIA’s Vera Rubin platform cements its dominance in training workloads, forcing memory makers to transition from commodity DRAM to co-designed HBM stacks—raising R&D costs and capex for Micron. Meanwhile, Samsung and SK Hynix leverage advanced packaging scale to capture HBM3E share, while U.S. CHIPS Act subsidies can’t offset memory’s inherent cyclicality. Over the next 12–24 months, as AI inference migrates to edge devices, demand for standard DRAM will soften, and the HBM market’s pre-2028 peak offers insufficient runway to justify Micron’s 48x P/E. In contrast, NVIDIA trades at just 32x earnings despite 43% projected annual EPS growth—a clear margin of safety. This isn’t a quarterly earnings divergence; it’s a permanent reallocation of value-chain power from memory to compute.