Micron Technology holds the near-term edge over Nvidia heading into 2027, thanks to a memory chip supply crunch, faster growth forecasts, and a cheaper valuation. Nvidia's advantage stretches further out, since its GPU demand looks set to outlast Micron's pricing power once new memory capacity arrives.
Micron Technology (NASDAQ: MU) holds the near-term edge over Nvidia (NASDAQ: NVDA), as artificial intelligence spending is expected to ramp up again in 2027. Nvidia sits at the top of the world's companies with a $5.3 trillion valuation. Micron ranks 13th globally with a $1.1 trillion valuation.
Micron's memory chip crunch gives it the edge through 2027
Nvidia and Micron are partners in the AI arms race: Micron makes the DRAM memory chips used inside Nvidia's GPUs and in competing products, and demand for those chips keeps rising. Nvidia expects the five largest AI hyperscalers to spend nearly $800 billion on data center capital expenditures in 2026. It projects that figure will climb to $1.3 trillion in 2027.
But demand for memory chips currently outpaces supply, a squeeze that lets Micron charge higher prices while its downstream customers absorb the cost. New production facilities are expected to come online in mid-2027 and through 2028, though Micron's management has told investors the tightness in the memory chip market likely won't ease until 2028.
Both companies forecast explosive growth for next year
Nvidia told investors on its latest conference call that it expects 70% revenue growth next year, a figure that beat analyst expectations. Micron hasn't issued guidance, but Wall Street analysts project 88% growth, edging out Nvidia's forecast.
Micron trades far cheaper, but Nvidia's edge may outlast the cycle
Micron trades at just 6.25 times its fiscal year 2027 earnings. Nvidia trades at 14 times its fiscal 2028 earnings, which ends in January 2028. That mix of a lower valuation, faster growth, and a memory-chip boom makes Micron the stronger pick specifically for 2027. Once the memory chip shortage resolves, however, Nvidia's high demand should persist while Micron's may cool off, tilting the edge to Nvidia over the next three to five years.
Source: The Motley Fool
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