Micron edges Nvidia for 2027 as $800 billion AI spend looms

Nvidia and Micron are tied together in the AI supply chain. Micron makes DRAM memory chips that go inside Nvidia GPUs, and those same memory chips are used in products from other Nvidia competitors. So while Nvidia sits at the top with a $5.3 trillion valuation and Micron ranks 13th worldwide at $1.1 trillion, both benefit from the same underlying AI build-out.

The key difference is where each sits in the demand cycle. Nvidia forecasts that the big five AI hyperscalers will spend nearly $800 billion on data center capital expenditures during 2026, rising to a projected $1.3 trillion next year. That means a lot of GPUs, and a lot of memory chips inside them. But right now memory chip demand outpaces supply, creating a price crunch that lets Micron charge more. Micron is adding production facilities that are likely to come online sometime in mid-2027 and throughout 2028, and management has told investors not to expect the tightness to subside until 2028. That window is what gives Micron the edge through 2027.

Nvidia is not standing still. During its latest conference call it announced it expects 70% revenue growth next year, far above what analysts had modeled. Micron hasn't given forward guidance, but Wall Street analysts estimate 88% growth, which would edge out Nvidia. The outcome for investors may hinge on whether memory supply stays tight as Micron's new factories ramp, and on whether hyperscaler spending actually reaches the projected $1.3 trillion.