By Unknown
Publication Date: 2026-02-08 12:00:00
Key Points
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Micron is a category leader in high-bandwidth memory chip solutions.
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Hyperscalers plan to spend at least $500 billion on capex this year.
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Micron trades at a meaningful discount compared to other AI chip leaders.
For the last three years, discussions around artificial intelligence (AI) chips have mainly revolved around Nvidia(NASDAQ: NVDA). Nvidia’s Hopper, Blackwell, and upcoming Rubin graphics processing unit (GPU) architectures serve as a core hardware foundation on which generative AI applications are designed.
But over the last several months, another semiconductor stock has come into focus. Let’s dig into why Wall Street’s new favorite AI chip stock is Micron Technology(NASDAQ: MU), and explore why the company could be following in Nvidia’s footsteps.
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Image source: Micron Technology.
What does Micron do?
There are several layers to the AI chip value chain. GPUs from Nvidia and Advanced Micro Devices are general-purpose, versatile pieces of hardware. They are capable of processing large datasets at high speeds, making AI application development more efficient.
On the other hand, Broadcom specializes in custom application-specific integrated circuits (ASICs). Custom silicon is currently leveraged by hyperscalers such as Alphabet and Meta Platforms for…
