Motley Fool Picks Micron Over Nvidia, SpaceX With 19 P/E and 345% Sales Growth
Updated
Updated · The Motley Fool · Jul 25
Motley Fool Picks Micron Over Nvidia, SpaceX With 19 P/E and 345% Sales Growth
3 articles · Updated · The Motley Fool · Jul 25
Summary
$1,000 investors were steered toward Micron as the top AI stock pick, ahead of Nvidia and newly public SpaceX, with the call centered on valuation and current earnings momentum.
Micron's case rests on a memory upcycle tied to AI: fiscal Q3 2026 sales jumped 345% to nearly $41.5 billion and adjusted EPS rose more than 1,200% to $25.11.
The analyst argued Micron also looks cheaper than Nvidia, trading at a 19 price-to-earnings ratio versus Nvidia's 31 even as both remain major AI beneficiaries.
SpaceX's AI expansion was framed as higher risk because it spent nearly $21 billion in capex last year and another $10 billion in Q1 2026 despite $81 billion in computing contracts.
The broader backdrop is a memory market projected to grow from more than $230 billion last year to over $1 trillion by 2027, with AI-driven shortages expected to last through 2028.