Zacks Investment Ideas feature highlights: Nvidia and Micron Technology

Globe and Mail

5 hours ago

For Immediate Release
Chicago, IL – July 15, 2025– Today, Zacks Investment Ideas feature highlights Nvidia NVDA and Micron Technology MU.
Is NVIDIA Topping Out? Why Micron Might Be the Next AI Winner
Nvidia just hit a staggering $4 trillion market cap, cementing its position as the most dominant force in the AI hardware space. It's an incredible milestone and one that reflects the company's overwhelming leadership in GPUs, data center infrastructure, and the broader AI compute stack. Nvidia remains a compelling long-term investment, and there's little reason to doubt its continued growth as AI adoption expands across industries.
However, with Nvidia's stock soaring to such extreme heights, some investors may be wondering: are there other AI stocks with considerable upside opportunity?
Micron Technology is a crucial but often underappreciated player in the AI ecosystem. While Nvidia powers the compute side of AI workloads, Micron is a leader in memory and storage and key components that are becoming increasingly critical to support the massive data demands of AI training and inference. This is becoming obvious as Micron's sales and earnings are accelerating higher in recent quarters.
As demand surges for high-bandwidth memory (HBM), DRAM, and advanced NAND solutions in AI data centers, Micron stands to benefit in a big way. And with shares still trading at a significant discount to many AI peers and growth forecasts, Micron may represent one of the most asymmetric opportunities in the entire semiconductor space.
Can Investors Still Buy Nvidia Shares?
Despite its massive run and $4 trillion market cap milestone, Nvidia remains a dominant force in the AI and data center ecosystem, and its long-term growth story is far from over. The company continues to lead in AI compute infrastructure, with its GPUs and networking platforms forming the backbone of nearly every major AI deployment—whether in hyperscale cloud, enterprise, or research.
The numbers still justify investor enthusiasm: revenue is projected to grow at a robust ~30% annual rate over the next several years, while earnings are expected to rise in lockstep, reflecting Nvidia's industry leadership and exceptional operating leverage. The company's gross margins remain world-class, and its innovation pipeline, from Blackwell chips to next-gen software platforms keeps it at the center of the AI arms race.
With shares continuing to print new all-time highs, price momentum is firmly on Nvidia's side. While valuation is elevated by traditional metrics at 39x forward earnings, it is still below its median valuation and with the company's combination of growth, profitability, and unmatched market positioning makes it difficult to bet against, even at these levels.
Why Micron Technology Stock Is a Buy
While much of the spotlight in AI has gone to the likes of Nvidia, Micron Technology is quietly emerging as a powerful beneficiaries of the AI infrastructure boom. As a global leader in memory and storage, Micron provides the high-bandwidth DRAM and advanced NAND essential for training and running large AI models. Its leadership in the memory market, where it competes alongside Samsung and SK Hynix, positions the company as a critical supplier in the accelerating data center buildout.
Micron's fundamentals are beginning to reflect this momentum. The stock has attracted significant institutional buying year-to-date, and the rebound off the April correction has been particularly strong, signaling a pickup in price momentum and investor conviction. With AI demand surging and memory pricing firming, sales are expected to jump 46% this year and 33% next year, while earnings are projected to surge over 500% this year and grow another 58% in 2026.
Although Micron currently holds a Zacks Rank #3 (Hold), it's worth noting that analyst sentiment has turned increasingly bullish, with earnings estimates revised higher by 12% for the current year and 14% for next year.
Even with this rapid growth, Micron trades at just 16x forward earnings—a reasonable multiple for a company delivering breakout results in one of the hottest corners of the semiconductor sector.
Micron Stock is a Non-Consensus AI Opportunity
While Nvidia continues to dominate headlines and attract the bulk of investor capital in the AI space, Micron offers a rare combination of explosive earnings growth, improving sentiment, and compelling valuation, all while flying under the radar. Its critical role in supplying the memory infrastructure that underpins AI models puts it in the center of one of the most powerful secular trends in technology today.
For investors looking to diversify their AI exposure beyond the obvious names, Micron represents a high-quality, underappreciated way to play the next leg of the AI buildout.
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