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▲ Micron (MU), Nvidia (NVDA)/AI Generated Image
Micron Technology (MU) is eyeing the position of the next leader after NVIDIA (NVDA), fueled by the explosive demand for artificial intelligence (AI) memory.
According to Nasdaq on June 28 (local time), Nvidia has established itself as a leading company in the AI market, with its stock price surging over 1,100% in the last three years. This is a result of its dominance across the entire AI system, expanding from Graphics Processing Units (GPUs) to networking equipment and enterprise software.
Micron has also emerged as a key beneficiary of the spread of artificial intelligence. The company supplies DRAM, NAND, HBM memory, and storage products necessary for AI operation. Nasdaq reported that as the use of AI agents increases, the demand for memory performance could grow even larger.
The pace of performance improvement is already explosive. Micron's revenue in the latest quarter more than quadrupled, exceeding $41 billion, and net profit surged from $1.8 billion in the same period last year to $28 billion. The company anticipates that demand will continue to outpace supply even after this year.
Profitability is also attracting market attention. Micron's gross profit margin in the latest quarter exceeded 84%, surpassing Nvidia's 74% range. The fact that the AI boom is not only driving revenue growth but also leading to improved profit margins is increasing investor interest.
However, it is difficult to conclude that Micron will immediately achieve the same status as Nvidia. Nvidia is a leader in the AI chip market, while Micron specializes in memory and storage devices. Nasdaq also pointed out that SK Hynix is considered a major player in the AI memory sector, which poses a risk for Micron.
Nevertheless, the stock price is already following an Nvidia-like rally path. Micron's stock price has surged over 800% in the last year. Based on recent demand and revenue growth trends, Nasdaq assessed that Micron has room for further long-term growth.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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