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AMD, Micron: Can They Outshine Nvidia?
21 Jan
Summary
- Micron's Q1 FY26 revenue surged 57% year-over-year.
- AMD aims to compete with Nvidia's AI accelerators.
- AI chip market projected for 29% CAGR through 2030.
The artificial intelligence (AI) accelerator market, projected to grow at a 29% compound annual growth rate through 2030, is currently led by Nvidia. However, investors seeking higher percentage growth may find opportunities in smaller companies like Micron and Advanced Micro Devices (AMD).
Micron, a key player in high-bandwidth memory (HBM), saw its revenue climb 57% year-over-year to $13.6 billion in its first quarter of fiscal 2026. Net income more than doubled to $5.2 billion, with analysts forecasting revenue to double for the fiscal year.
Advanced Micro Devices (AMD) is strategically positioned to compete with Nvidia's AI accelerators. The company expects to release its MI450 later this year, which may outperform Nvidia's offerings and gain market share due to a lower price point. AMD's revenue grew 36% year-over-year in the third quarter of 2025, with profits increasing by 61%.
Both companies, despite Nvidia's commanding lead, show strong growth potential. Micron's stock price rose 250% in the past year, while AMD's valuation suggests rapid profit growth could continue, potentially leading to significant stock price appreciation.
