Forget Nvidia - This Chip Stock Could Deliver Explosive Returns by 2030

TradingKey - Everyone's been raving about how Nvidia (NVDA) has made investors rich over the past 5 years. And rightfully so - $100 invested in the semiconductor giant 5 years ago would be worth a whopping $1360 today. But here's the thing. With Nvidia's gargantuan $4.4 trillion market cap, sky-high valuation, and intensifying competition in the AI chip space, replicating those mind-boggling gains over the next 5 years is going to be a tall order. Sure, Nvidia may very well become a $10 trillion company by the end of the decade, but the upside is capped. That's why I'm pounding the table on another semiconductor stock that is not only dirt cheap right now, but is growing at a blistering pace - Micron Technology (MU).Why Micron is Set to SoarThanks to the AI boom, demand for the memory chips that Micron produces is going through the roof. The likes of Nvidia, AMD, Broadcom and Marvell are gobbling up Micron's High Bandwidth Memory (HBM) chips to transfer massive amounts of data at high speeds with lower power consumption and latency. This is critical for supporting AI workloads in data centers.The year 2026 is expected as the breakout year for mass production of HBM4, and now Micron is already raising things. Their HBM4 prototypes have reached record breaking benchmarks, with data transfer speeds higher than 11 Gbps on the I/O lines and bandwidth of more than 2.8 TB/s. But the big difference is the efficiency: Micron’s HBM4 is over 20% more power efficient than the prior generation. And in AI data centers where heat management is a constant battle, save energy means Micron enjoys a huge technological edge.Normally Nvidia’s HBM business is the preserve of SK Hynix but since the advent of Ampere, this has changed. But due to the absolute efficiency of HBM4, Micron isn’t just taking home more of the pie, it has joined SK Hynix and Samsung as one of the three pillars supporting Nvidia’s next-gen Rubin gpu architecture.Meanwhile, edge AI devices like smartphones and PCs need more DRAM and storage to run AI workloads.This demand is so strong that it's causing shortages and driving up prices. No wonder Micron absolutely crushed earnings expectations for Q1 FY2026. Revenue surged 57% to $13.6 billion while adjusted EPS skyrocketed 167% to $4.78.The guidance was even more bonkers. Micron expects revenue to surge 2.3X next quarter to $18.7 billion, with adjusted EPS jumping 440% to $8.42. CEO Sanjay Mehrotra said the "growth in AI data center capacity is driving significant increases in demand for high performance, high capacity memory and storage."Micron has already sold out its entire HBM capacity for the 2026 calendar year, with orders secured through prepayments and multi-year contracts.At the same time, the company is fast-tracking the expansion of its new fabrication plants in Idaho and New York, fueled by tens of billions in subsidies from the U.S. CHIPS Act. As the only major memory manufacturer headquartered in the United States, Micron holds an irreplaceable strategic advantage within the supply chains of North American cloud giants like Microsoft, Amazon, and Google.AI Memory Demand to Explode HigherMicron now sees server market growth approaching 17%-19% in CY2025, up from its prior 10% forecast. This trend could persist through 2030. IDC predicts global spending on AI infrastructure will hit $758 billion by 2029. Accelerated servers supporting AI workloads are expected to grow at a 42% CAGR over this period.Micron's rival SK Hynix expects the AI memory market to grow 30% annually through the end of the decade. But that could prove conservative, as even custom AI chip makers are now deploying HBM to boost chip speed and efficiency.Micron sees the HBM market growing 40% annually to $100 billion in revenue by 2028, up from $35 billion this year.Bottom line: Micron is very likely to maintain healthy growth through 2030. Coupled with its attractive valuation, it's not hard to see why this AI stock could outperform Nvidia by 2030.Massive Upside Potential for MU StockMicron stock is massively undervalued relative to its growth potential over the next 5 years. With a PEG ratio of just 0.53 (vs 0.69 for Nvidia), MU offers a far better growth bang for the buck. Assuming Micron grows EPS by just 10% in FY29 and FY30 (a conservative assumption), its EPS could jump to nearly $42.23 five years from now. At a 25X forward P/E multiple (in-line with Nasdaq 100), the stock could hit $872 by 2030. That's more than a 3-bagger from current levels. But even bigger gains can't be ruled out. Micron's rapid growth could lead to higher valuation multiples in the future, meaning it could indeed far surpass Nvidia by 2030.Find out more