<div id="readability-page-1">Nvidia (NASDAQ: NVDA) was one of the best-performing stocks in 2024 with an incredible gain of 171%. The upside was driven by soaring demand for its data center graphics processing units (GPUs), which are the gold standard for developing artificial intelligence (AI). But the AI hardware race is heating up, and some of Nvidia's peers including Advanced Micro Devices (AMD 0.75%) and Micron Technology (MU 4.82%) might also be great buys. Both of those companies have recently delivered record financial results on the back of AI chip sales, yet their stock prices are down significantly from their 52-week highs. AMD and Micron are starting to look like a very good value, so here's why investors might want to buy both in 2025. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDg5MDYvYS1kaWdpdGFsLXJlbmRlci1vZi1hLWNpcmN1aXQtYm9hcmQtd2l0aC1hLWNoaXAtaW4tdGhlLWNlbnRlci1pbnNjcmliZWQtd2l0aC10aGUtbGV0dGVycy1haS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDg5MDYvYS1kaWdpdGFsLXJlbmRlci1vZi1hLWNpcmN1aXQtYm9hcmQtd2l0aC1hLWNoaXAtaW4tdGhlLWNlbnRlci1pbnNjcmliZWQtd2l0aC10aGUtbGV0dGVycy1haS5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>The case for Advanced Micro Devices</h2> AMD is a titan in the world of consumer electronics, because its chips power everything from the infotainment systems in Tesla's electric vehicles to Microsoft's Xbox game console. But the company stepped up to compete with Nvidia in the data center by launching its own range of AI GPUs in late 2023, starting with the MI300X. Although the MI300X hit the market more than a year after Nvidia's H100, it successfully won many top AI customers like Microsoft, Oracle, and Meta Platforms, some of which have yielded lower costs and better performance by using the AMD product. AMD is ramping up its pace of innovation, unveiling a new GPU architecture called Compute DNA (CDNA) 4 last year, to compete with Nvidia's industry-leading Blackwell architecture. CDNA 4-based GPUs like the upcoming MI350 will deliver a whopping 35 times more performance than CDNA 3 variants like the MI300, paving the way for developers to deploy the most advanced AI models so far. AMD originally expected to start shipping the MI350 in the second half of 2025, but it's significantly ahead of schedule and will send samples to customers this quarter, with production set to ramp up into the middle of the year. AI models are becoming more efficient, and personal computers (PCs), smartphones, and other devices will soon pack enough computing power to run them locally, which reduces the reliance on external data centers. AMD's Ryzen AI 300 Series are the best AI chips in the industry for PCs, and the company expects over 100 commercial platforms to use them in 2025 from top manufacturers like HP, Microsoft, Lenovo, and more. AMD recently reported its financial results for 2024, and it generated a record $12.6 billion in data center revenue, which was a 94% increase from 2023. That included $5 billion in GPU sales alone. Revenue from its client segment -- which is home to the Ryzen AI PC chips -- jumped 52% to $7 billion. That's why AMD stock is starting to look like a great value. Based on the company's $3.31 in adjusted earnings per share (EPS) last year, its stock trades at a price-to-earnings (P/E) ratio of 32.6, which is a 34% discount to Nvidia's P/E of 49.7. Wall Street expects AMD to deliver earnings growth of 43% during 2025 (according to Yahoo!), so its stock looks even cheaper on a forward basis. That's a key reason why I think it could be a great buy this year. <h2>The case for Micron Technology</h2> Micron is a leading supplier of memory chips for a range of applications including the data center, where they complement GPUs in AI workloads. Memory stores information in a ready state, which the GPU can call upon immediately in training and inference settings to speed up processing time. Micron's HBM3E (high-bandwidth memory) solutions are the best in the industry, delivering 50% more capacity while consuming 30% less energy than the competition. Nvidia chose Micron's HBM3E hardware to power its new Blackwell GB200 GPU, which is the most advanced AI chip currently on the market. Demand has been so strong that Micron's data center memory solutions are sold out until 2026, and that momentum is unlikely to slow down. The company expects its addressable market in this segment to grow to $100 billion per year by 2030 -- an enormous jump from its value of $16 billion today. As a result, Micron is already working on a new HBM4E solution, which is expected to deliver a 50% leap in performance from the current generation. Micron generated $8.7 billion in revenue during its fiscal 2025 first quarter (ended Nov. 28), which was an 84% increase from the year-ago period. Its data center revenue, specifically, rose by 400% to $4.4 billion, making up half of the company's total revenue for the first time. But as is the case with AMD, Micron's AI opportunity is much bigger than the data center. The company says new PCs fitted with AI processors require between 16 gigabytes and 24 gigabytes of DRAM (memory) capacity, which is up from 12 gigabytes, on average, in non-AI PCs last year. There is a similar shift in the smartphone industry, with several manufacturers recently announcing Android-powered devices with up to 16 gigabytes of memory to handle AI workloads. These consumer segments could be major sources of growth for Micron in the future. Wall Street's consensus forecast (provided by Yahoo!) suggests Micron could deliver $6.89 in EPS during fiscal 2025, placing its stock at a forward P/E ratio of just 13.8. That's a steep discount to the forward P/Es of both Nvidia and AMD: <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/0faed0657f3fca8ca0cf6a42bec62704.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="473" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/0faed0657f3fca8ca0cf6a42bec62704.png"/> NVDA PE Ratio (Forward) data by YCharts Therefore, given Micron's incredible growth, its stock might be one of the biggest bargains in the AI chip space right now. </div>

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

NVIDIA Financial Results for Q4 Fiscal 2025

Nvidia's success in 2024 has sparked interest in other semiconductor stocks, particularly Advanced Micro Devices (AMD) and Micron Technology. AMD has launched competitive AI GPUs and reported a record $12.6 billion in data center revenue, while Micron's memory chips are in high demand, with a 400% increase in data center revenue. Both companies are seen as undervalued, with strong growth potential in 2025, making them attractive investment options for the upcoming year.

- Nvidia experienced a remarkable 171% stock gain in 2024, driven by high demand for its AI-focused GPUs.  
- Competitors Advanced Micro Devices (AMD) and Micron Technology are also showing strong financial results, with AMD reporting a 94% increase in data center revenue and Micron's data center revenue rising by 400%.  
- Both companies are positioned for growth in the AI market, with AMD's new GPUs and Micron's memory solutions expected to drive significant advancements and opportunities in 2025.

2 Super Semiconductor Stocks (Besides Nvidia) to Buy Hand Over Fist in 2025