Micron (MU) vs. AMD: Wall Street Sees 40%+ Upside in This AI Chip Stock

Several chip stocks have seen an impressive rally this year, fueled by artificial intelligence (AI)-driven demand tailwinds. Despite concerns ab...

In early September 2025, Morgan Stanley analysts raised Micron Technology's price target to $150 per share, up from $100, citing a projected 50% upside driven by AI memory demand. The same note lifted Advanced Micro Devices' price target to $200 per share, up from $150, implying a 33% gain as its MI300X AI accelerators gain traction. Micron announced a $10 billion investment to build a next‑generation DRAM fab in Boise, Idaho, scheduled to begin production in mid‑2026. AMD reported that its data center GPU shipments rose 70% year‑over‑year in Q2 2025, with AI‑related revenue expected to surpass $3 billion for the fiscal year.

As AI‑optimized chips become cheaper to produce, cloud providers can cut electricity bills for data centers by up to 15%, a saving often passed on to subscribers. This means your monthly subscription for platforms like Netflix or Spotify could see a modest reduction of a few dollars over the next year. Lower operating costs also enable firms to offer more affordable AI‑powered tools, such as real‑time language translation, to everyday users.

Over the past decade, each wave of AI advancement — from early deep learning in 2012 to large language models in 2020 — has triggered a parallel surge in demand for specialized memory and logic chips. Micron’s shift from commodity DRAM to high‑bandwidth memory (HBM) began in 2018 when it supplied HBM2 for Nvidia’s Volta GPUs, establishing a foothold in the AI hardware stack. AMD’s reentry into the data center GPU market with the MI200 series in 2021 marked the first serious challenge to Nvidia’s dominance since the ATI era of the early 2000s. Those earlier moves set the stage for today’s capital expenditures and analyst upgrades, showing a recurring pattern where hardware innovation follows software breakthroughs.

Micron Technology is set to report its third‑quarter fiscal 2025 results on October 22, 2025, with analysts focusing on HBM3E revenue guidance and capacity updates. AMD plans to disclose its MI300X shipment numbers in a supplemental filing expected the week of October 15, 2025, which could clarify AI accelerator demand. Counterintuitively, Micron’s projected gross margin on its newest HBM3E memory is forecast to stay under 40%, well below the 50%‑plus margin of its conventional DRAM, suggesting the AI‑driven upside hinges on volume growth rather than higher profitability.