By Anthony Di Pizio
Publication Date: 2025-12-24 10:18:00
Nvidia isn’t the only chip company benefiting from the artificial intelligence hardware boom.
Nvidia (NVDA +2.92%) supplies graphics processing units (GPUs) for data centers, which are the main chips used to develop artificial intelligence (AI). The company is seeing more demand for its products than it can possibly supply, which is fueling a huge surge in its revenue and earnings.
With just one week left in 2025, Nvidia stock is sitting on a return of nearly 37%. But it has been trounced by another AI semiconductor stock, which is up by an eye-popping 229% this year: Micron Technology (MU 0.12%). This company supplies memory and storage chips that are critical for AI workloads in data centers, computers, and even smartphones.
The Wall Street Journal tracks 43 analysts who cover Micron stock, and the overwhelming majority think it’s a buy heading into 2026. In fact, not a single analyst recommends selling. Here’s why it could be a great addition to any portfolio for the new year.
Image source: Getty Images.
Nvidia is one of Micron’s many AI customers
High-bandwidth memory (HBM) is needed to unlock the best performance from every data center GPU because it stores information in a ready state, which accelerates processing speeds. A low memory capacity can cause bottlenecks by forcing the GPU to pause its computations while it waits to receive more data, whereas a high capacity keeps data flowing constantly. This is especially important in data-intensive AI…
