Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc.<\/strong> (MU Quick QuoteMU<\/a> – Free Report<\/a>) outperformed Wall Street\u2019s darling NVIDIA Corporation<\/strong> (NVDA Quick QuoteNVDA<\/a> – Free Report<\/a>) last year (+239.1% vs +38.8%). Can Micron repeat the feat, or will this year see NVIDIA having the upper hand? Let\u2019s find out.\u00a0\u00a0<\/p>\n Micron Soars on AI-Driven HBM Chip Demand\u00a0<\/p>\n Micron\u2019s high-bandwidth memory (HBM) chips excel at handling large volumes of data while minimizing power consumption. Currently, these HBM chips are in short supply due to the AI infrastructure surge, which is fueling high demand and contributing significantly to Micron\u2019s recent strong performance.\u00a0<\/p>\n Micron reported revenues of $13.64 billion in first-quarter fiscal 2026, up 56.8% year over year, according to investors.micron.com<\/a>.\u00a0 This exceeded analysts\u2019 expectations of roughly $12.88 billion, reinforcing confidence that demand for Micron\u2019s products remains strong.\u00a0\u00a0<\/p>\n All of Micron\u2019s business segments saw revenue growth in the fiscal first quarter, including its core cloud memory business unit. This robust revenue performance helped Micron post non-GAAP net income of $5.48 billion, or $4.78 per share, above analysts\u2019 projections of $3.94.\u00a0<\/p>\n Additionally, fueled by AI-driven demand for HBM chips, Micron expects even stronger results for second-quarter fiscal 2026, with revenues of $18.3\u2013$19.1 billion and earnings per share (EPS) of $8.22\u2013$8.62. The company\u2019s solid cash flow of $3.9 billion in the fiscal first quarter also provides Micron with the funds to support growth initiatives.\u00a0<\/p>\n NVIDIA Rides AI Momentum Into 2026\u00a0<\/p>\n Strong demand for the CUDA software platform and cutting-edge Blackwell chips has driven NVIDIA\u2019s recent quarterly performance. NVIDIA\u2019s revenues for the third-quarter fiscal 2026 came in at $57 billion, up 62% year over year and 22% sequentially, according to investor.nvidia.com<\/a>.<\/p>\n NVIDIA\u2019s founder and CEO, Jensen Huang, said that \u201cBlackwell sales are off the charts, and cloud GPUs are sold out\u201d. The company remains optimistic about future growth, projecting fourth-quarter fiscal 2026 revenues around $65 billion, with a plus or minus 2% margin.\u00a0\u00a0<\/p>\n Furthermore, the company anticipates continued profitability growth as the Trump administration has approved NVIDIA to sell H200 AI chips to select customers in China. Benefiting from a competitive edge in the AI hardware market and a likely increase in global data center capital expenditures, NVIDIA is well-positioned for growth in 2026, with Jensen Huang at the helm.\u00a0<\/p>\n Micron or NVIDIA: Which AI Chip Stock Will Lead in 2026?\u00a0<\/p>\n No doubt, Micron is set to thrive in 2026, driven by higher demand for its HBM chips. Similarly, NVIDIA is set to expand, fueled by soaring Blackwell chip demand, record cloud GPU sales and a rise in global data center investments.\u00a0\u00a0<\/p>\n However, Micron\u2019s shares are currently trading near an all-time high, leaving little room for error. This means any missed expectations could trigger a drop in Micron\u2019s stock price. Moreover, NVIDIA\u2019s forward price-to-earnings (P\/E) ratio of 39.68 exceeds Micron\u2019s 10.43, reflecting the market\u2019s expectation of stronger growth for NVIDIA.<\/p>\n Image Source: Zacks Investment Research<\/p>\n![\"Zacks](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/01\/140866.jpg\"\/)
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