--- title: "Nvidia or Micron: One AI Chip Stock Is a Buy, the Other Could Get Worse, Says Investor" type: "News" locale: "en" url: "https://longbridge.com/en/news/293974129.md" description: "Investor 'The Techie' rates Nvidia (NVDA) as a Sell, citing intensifying competition from Chinese firms and a shift to custom ASICs for inference workloads, predicting significant downside. Conversely, Micron (MU) receives a Buy rating due to persistent high-bandwidth memory shortages and favorable risk-reward dynamics. While Wall Street maintains Strong Buy ratings for both with substantial upside targets, this specific investor believes NVDA's valuation is cheap for a reason and expects deterioration." datetime: "2026-07-27T20:42:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293974129.md) - [en](https://longbridge.com/en/news/293974129.md) - [zh-HK](https://longbridge.com/zh-HK/news/293974129.md) --- # Nvidia or Micron: One AI Chip Stock Is a Buy, the Other Could Get Worse, Says Investor **Nvidia (****NASDAQ:NVDA****)** and **Micron (****NASDAQ:MU****)** have been among the biggest winners of the AI boom, though their gains have come at different points in the cycle. Nvidia led the initial rally on booming demand for its AI GPUs, while Micron has benefited more recently from growing demand for high-bandwidth memory. ### Claim 55% Off TipRanks 200% short exposure to NVDA with NVDS Both, then, have generated massive returns for investors over the past few years, although as the market has once again become jittery over the massive amounts being spent on AI and whether the outlay will ultimately be justified, both have also retreated from recent highs. So, moving forward from here, which one of these names represents a better opportunity? One 5-star investor, known by the pseudonym The Techie (TT), has been sizing up the prospects of both, and thinks one looks more appealing than the other. Looking at Nvidia, its valuation may look attractive by historical standards. Despite being the world's most valuable company, the stock trades at roughly 23 times forward earnings – a multi-year low. But TT believes the stock is "cheap for a reason," arguing that the market is questioning the company's ability to maintain its long-term dominance of AI infrastructure as competition intensifies and workloads evolve. Chinese AI companies such as DeepSeek, along with technology giants including Alibaba and Baidu, are accelerating efforts to build more self-sufficient AI ecosystems, potentially weakening Nvidia's grip on hyperscaler capital spending while making a return to the Chinese market more difficult. At the same time, AI computing demand is shifting from training – Nvidia's traditional stronghold – to inference, where major cloud providers are showing a growing preference for custom ASICs over Nvidia's chips. Against that backdrop, the investor thinks things are "about to get much worse," forecasting "significant downside ahead." Accordingly, TT rates NVDA stock a Sell. Micron, by contrast, receives a much more favorable assessment. Although the stock has fallen about 26% from its June high and remains volatile, the investor describes the company as a "fundamentally strong AI-driven memory leader." The bull case is supported by persistent shortages of HBM (high-bandwidth memory), a critical component in AI infrastructure. "Going forward," TT says, "while I think Micron will continue to be affected by the overall market dynamics and headwinds, I think the risk-reward is more favorable than it was post-print." To this end, TT rates MU stock a Buy. (To watch Techie's track record, click here) Wall Street, however, does not seem to think investors need to choose between the two. Both are rated as Strong Buys. NVDA's $309.94 average price target suggests shares will gain ~58% over the coming year, while MU's $1,569.29 average target offers 12-month upside of 74%. 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