Nvidia’s AI Dominance Faces Valuation Concerns as Micron Emerges as Alternative Semiconductor Play
Nvidia's stock has surged 43% in 2025, cementing its position as the backbone of global AI infrastructure with its Blackwell architecture and networking solutions. Yet at a $4.6 trillion market cap and 30x forward earnings, analysts warn the AI leader's growth may plateau.
Memory chipmaker Micron presents a compelling alternative, with shares up 128% this year on booming demand for high-bandwidth memory. Its diversified customer base contrasts with Nvidia's reliance on a handful of hyperscalers - a risk factor now drawing Wall Street scrutiny.
The semiconductor sector's AI-driven transformation continues unabated, creating multiple avenues for investor participation beyond the obvious plays. As valuation gaps emerge, capital appears to be flowing toward secondary beneficiaries like Micron that still offer substantial upside.
