Better AI Buy: Nvidia vs Micron

By Adria Cimino – Mar 24, 2026 at 6:15PM ESTKey PointsNvidia and Micron have seen revenue take off amid demand from AI customers.The each provide tools that are critical to the development and use of AI.Nvidia (NVDA 0.33%) and Micron Technology (MU 2.28%) both play key roles in the hot growth area of artificial intelligence (AI). The former is the dominant provider worldwide of AI chips, and thanks to this, has become almost a household name. The latter offers something crucial for an AI system to do its job, and that's memory and storage. Both Nvidia and Micron have seen earnings and stock performance soar in recent quarters due to this presence in AI. In recent times, though, one of these stocks has continued to climb, while the other has lost momentum. Which is the better AI buy today? Let's find out. Image source: Getty Images. The case for Nvidia Nvidia is far from being a young start-up. The company has been around for more than 30 years and, in its early days, focused on designing graphics processing units (GPUs), or high-powered chips, for the gaming industry. But in more recent times, chief Jensen Huang recognized the AI opportunity and shifted gears. Today, Nvidia still serves the video game market, but its biggest business by far is designing GPUs and entire AI platforms. This has supercharged revenue growth, sending revenue to record levels -- for example, it climbed 65% to $215 billion in the latest full year. Nvidia has remained in the lead because it is committed to constant innovation, pledging to update its chips on an annual basis. It's followed through on this with the launches of Blackwell and Blackwell Ultra, and it's now on track to release the Rubin platform later this year. The fact that it's expanded well beyond GPUs and offers networking, enterprise software, and more has also helped it stay on top. ExpandNASDAQ: NVDANvidiaToday's Change(-0.33%) $-0.57Current Price$175.07Key Data PointsMarket Cap$4.3TDay's Range$173.99 - $176.2152wk Range$86.62 - $212.19Volume4.4MAvg Vol175MGross Margin71.07%Dividend Yield0.02% The case for Micron Micron, like Nvidia, is a company that's been around for many years -- more than 45 -- and has seen revenue surge in recent times due to its role in AI. You'll find the company's memory products in smartphones, personal computers, and in use throughout a variety of industries, but its place in data centers has offered Micron a particularly interesting opportunity. As mentioned, for AI to function, memory is needed, and with an AI market forecast to reach beyond $2 trillion in just a few years, the future looks bright for Micron. The company sells DRAM and NAND memory, as well as high-bandwidth memory (HBM), which is perfectly suited to the massive demands of AI. This helped Micron deliver records in revenue, gross margin, earnings per share, and free cash flow in the recent quarter, and it's on track to double free cash flow sequentially in the coming quarter. Demand from major customers is so high that Micron says it will only be able to meet half to two-thirds of it in the months to come. So, right now, the supply constraint is the only thing holding Micron back from even more growth. ExpandNASDAQ: MUMicron TechnologyToday's Change(-2.28%) $-9.21Current Price$395.14Key Data PointsMarket Cap$456BDay's Range$388.91 - $404.8452wk Range$61.54 - $471.34Volume1.6MAvg Vol37MGross Margin58.54%Dividend Yield0.11% Should you buy chips or memory? Nvidia and Micron are both well-positioned to gain as this AI revolution moves into its next stages. But if you could only buy one right now, which should you go for? Let's take a look at recent stock performance and valuation. Micron shares have climbed nearly 50% so far this year, while Nvidia stock has declined about 5%. Both stocks have seen valuation come down over the past year, and they trade at very reasonable prices considering their long-term prospects. NVDA PE Ratio (Forward) data by YCharts Micron stock clearly is off to a better start this year than Nvidia, and it may be on the way to delivering bigger gains in the short term, but I'm concerned that its inability to fully serve demand could weigh on stock performance at some point. I also see Nvidia's valuation today as a major buying opportunity for the long-term investor -- even if the stock stumbles in the months to come, it's on track to gain over time. Though both of these stocks make excellent additions to an AI portfolio, in my opinion, Nvidia is the better AI buy right now.Read NextMar 24, 2026 •By Beth McKennaWill Nvidia's Financial Results Be Hurt by the Iran War and High Oil Prices?Mar 24, 2026 •By Lyle DalyBetter Semiconductor Stock During the Crash: Nvidia or AMD?Mar 24, 2026 •By Keithen DruryMarch's Most Compelling Artificial Intelligence (AI) Stock PickMar 24, 2026 •By Leo SunThe Artificial Intelligence (AI) Trade Is Splitting in Two. Here's How to Pick the Right Side in 2026.Mar 24, 2026 •By John BromelsNvidia's $20 Billion Groq Acquisition Just Paid Off.

This New Chip Could Change the AI Inference Game in 2026.Mar 24, 2026 •By Daniel FoelberNvidia Stock Could Become the Next Apple. Here's What It Means for Investors.About the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedNvidiaNASDAQ: NVDA$175.07(-0.33%)-$0.57Micron TechnologyNASDAQ: MU$395.14(-2.28%)-$9.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.