Should You Buy Micron Stock Instead of Nvidia? | MU Stock vs. NVDA Stock

Parkev Tatevosian, CFA•Sep 13, 2026

Summary

Parkev provides a detailed comparison between Nvidia and Micron, focusing on how both are capitalizing on the data center spending boom. Parkev notes that Nvidia's revenue has soared to nearly $303 billion, while Micron's revenue recently increased fourfold, driven by the essential role of memory and storage in agentic AI. Both companies have secured long-term strategic agreements stretching toward 2030, which Parkev believes provides rare visibility and reduces R&D risks. However, Parkev warns that current profit margins and returns on invested capital (ROIC) are likely at unsustainable peaks, even if they remain elevated for the next 24 months.

Nvidia (NVDA): Parkev views Nvidia as the stronger long-term investment because its competitive advantage in accelerated computing is more durable than Micron's commodity-linked memory business. Parkev calculates a fair value for Nvidia of $338 per share, which implies an upside of over 50% from the current market price of $224. Parkev highlights that Nvidia's forward P/E of 14.5 is remarkably cheap, trading at a steep discount to the S&P 500 and even retailers like Walmart or Costco.

Micron (MU): Parkev notes that Micron achieved an extraordinary operating profit margin of over 80% in its most recent quarter, though Parkev expects this to normalize as supply-demand dynamics reach equilibrium around 2028. Parkev estimates a fair value for Micron of $1,395 per share, representing a 36% upside from the current market price of $1,024. While Parkev rates Micron as a buy, Parkev points out that Micron faces more competition from companies like SK Hynix and Samsung and must invest more heavily in physical manufacturing compared to Nvidia's asset-light model.

Mentioned Stocks

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev identifies Micron as an excellent buying opportunity due to soaring memory prices and strategic contracts extending to 2030. Parkev notes the company's record-breaking 80% operating profit margin. Parkev calculates a fair value of $1,395 per share, which offers a 36% upside from the current price of $1,024.

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NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev considers Nvidia the better buy between the two because of its 'asset-light' model and more durable competitive advantage in AI software and hardware. Parkev highlights an extremely low forward P/E of 14.5 and an ROIC of 109%. Parkev calculates a fair value of $338 per share, suggesting over 50% upside from the current price of $224.

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