Nvidia and AMD are among the biggest chip manufactures in the world. Both are pioneering the ongoing AI boom and the stocks of both companies have given stellar returns over the last years. However, one company that is quietly taking the spotlight is Micron (MU). Let’s discuss how Micron may emerge as the winner in the battle between Nvidia and AMD.
How Micron Wins The Nvidia, AMD Battle
While Nvidia and AMD are supplying AI platforms with chips needed to run AI models, both companies are heavily reliant on memory chips for their functions. There are three big names in the AI memory chip sector. SK Hynix is the single largest memory chip provider, followed by Samsung Electronics. Micron is the third largest, with a significantly smaller market share. Whoever wins in the AI chip race, the memory providers are the quite winners.
While Micron’s market share may be smaller than SK Hynix and Samsung’s, it is the only US-based company among the “big three”. This puts Micron is a very unique position. Nvidia and AMD are also US-based companies. To add to that, President Trump has been very vocal about the growth of domestic companies. Micron has also recently announced a $250 billion investment plan for the US to ramp up domestic production. Nvidia and AMD may decide to make a bigger part of their inventory US-built to counter President Trump’s tariffs. This may lead to a massive surge in demand for Micron’s memory chips.
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AMD recently revealed its new AI chips that the company claims can outperform Nvidia’s offerings. Even if AMD beats Nvidia in the AI chip race, the company will still require Micron’s memory chips. This makes Micron a silent winner in the battle. Whoever comes out on top, will still require the company’s chips to get ahead.