Nvidia is the better AI growth buy than Micron right now, despite Micron's steeper stock climb this year, because Nvidia's valuation has fallen while it expands into the CPU market.

What happened: Micron's stock has surged more than 240% this year, outpacing Nvidia's 9% gain as of June 11. However, Nvidia trades at 22x forward earnings while Micron trades at 16x—and Nvidia's valuation has fallen this year while Micron's has risen.

Why it matters: Both companies have benefited from AI demand, but they serve different needs: Nvidia leads in compute power (the chips that train and run AI models), while Micron supplies memory and storage that AI agents require. Micron recently hit record revenue, gross margin, and free cash flow, with revenue from memory products jumping in the triple digits. Yet Micron faces a constraint—it cannot currently serve 100% of customer demand due to supply limits.

What to watch: Nvidia is entering the CPU (central processing unit) market, which the article identifies as a $200 billion（約32兆円） opportunity to fuel AI agents. The company is launching its first stand-alone CPU this fall and a new superchip for PCs. Micron forecasts third-quarter revenue of $33.5 billion（約5.4兆円）, a record high, and predicts free cash flow will roughly double sequentially in that period.