Better AI Growth Buy Right Now: Nvidia vs Micron
Written by Adria Cimino for The Motley Fool -> Nvidia and Micron both serve AI customers with products crucial for their success. These stocks have each soared more than 1,000% over the past five years. Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU) each have seen re
Nvidia and Micron both serve AI customers with products crucial for their success.
These stocks have each soared more than 1,000% over the past five years.
Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU) each have seen revenue soar amid this artificial intelligence (AI) boom. This is because these companies offer something that is crucial for the development and performance of this hot technology: compute power, and memory and storage.
Nvidia is the compute expert, designing the fastest graphics processing units (GPUs) around, while Micron offers the memory and storage necessary for AI tasks. Investors have recognized these companies' strengths and have rushed to get in on the stocks. As a result, Nvidia and Micron each have climbed more than 1,000% over the past five years.
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Both of these companies are likely to win as this AI story continues to unfold. But if you could only invest in one today, which is the better AI growth buy? Let's find out.
Nvidia is the leading designer of GPUs , the chips powering key AI tasks like the training and inference of AI models. Though rivals also offer compute, and in many cases are delivering revenue growth too, Nvidia remains a big step ahead. Companies may invest in a broad range of compute, but those who aim to win in AI generally rely at least partially on Nvidia's GPUs -- their high speed helps customers reach the finish line faster and may result in a lower total cost of ownership over time.
But Nvidia doesn't rely on GPUs alone. The company offers a full portfolio of related products and services, and today it's in the process of entering another enormous market: the central processing unit (CPU) market. These are the chips that generally power all computers, and they are a key tool to fuel AI agents, the next area of AI growth. Nvidia is launching its first-ever stand-alone CPU this fall and is conquering the CPU for PC market with a new superchip. This may set it on track for leadership in this $200 billion market.
