Why Micron Stock Could Outperform NVIDIA in 2025

Key Points

• Micron is showing renewed strength with strong earnings, high call option volume, and analyst upgrades, positioning it for potential breakout performance.
• Its lower market capitalization compared to NVIDIA creates room for higher percentage growth as data center demand and AI expansion drive chip needs.
• Wall Street and institutional investors are increasingly bullish, signaling that Micron may be on track to outperform expectations heading into late 2025.

The race for artificial intelligence, and the semiconductors that drive its development, is still ongoing for the U.S. technology sector. This time, however, it is one of the more or less forgotten tech names that has recently earned the attention of the markets: Micron Technology Inc. NASDAQ: MU.

Considering that it has fallen behind leaders like NVIDIA NASDAQ: NVDA in recent quarters, a performance gap that will eventually have to be closed. And today’s price action suggests a shift is underway.   More than just price action, surging participation in Micron shares and call options signals that traders may be positioning for a significant move.

With AI and data center growth continuing to drive chip demand, Micron is looking increasingly indispensable—which might make it the time may be right for investors to look beyond the giants and consider the potential of this rising contender.

Micron’s Underdog Advantage: Room to Grow

NVIDIA was one of the first companies in the United States to cross the $1 trillion valuation mark. It now sits on a $4.1 trillion throne, head and shoulders above its peers in the semiconductor and chipmaking sectors. 

Micron, by contrast, sits at a relatively modest $156.7 billion. That smaller size gives it a distinct advantage: more room to grow. First, it would be much easier for Micron to grow in percentage terms. Adding $10 billion of value is a much easier task than NVIDIA adding a few hundred billion dollars in value. Assuming Micron’s fundamentals remain strong, this dynamic leaves ample upside for the stock.

In the company’s recent earnings, Micron reported Q2 2025 earnings per share (EPS) of $1.91, beating the MarketBeat consensus estimate of $1.57 by a robust 22%. Although, given the stock has rallied 22.6% in the past quarter, it's safe to assume that some of that beat is priced in, so investors are now looking ahead.

Traders Bet Big on Next Quarter’s Numbers

With the next set of quarterly earnings set for late September 2025, traders are showing high conviction. Over 206,000 call options were bought in early September—an aggressive bet on more upside.

For those unfamiliar with the way options work, this is a bet that carries significant amounts of leverage (higher risk) while also inherently having a countdown to the bet’s results, i.e., as an expiration date is in play. All told, these call option buyers must have greater-than-average conviction that Micron will, in fact, cross into a new high.

Options trades like these are time-sensitive and leverage-heavy, meaning traders only place them when they have a strong reason to believe in a big move. That conviction, combined with Micron trading near 98% of its 52-week high, suggests more upside could be in store.

But traders aren’t the only ones taking notice.

Analyst and Institutional Confidence Are Building

Analysts are beginning to upgrade their outlooks.

J.P. Morgan’s Harlan Sur recently rated Micron as Overweight with a price target of $185—a full 32% upside from current levels. That’s notably higher than the $147.50 average consensus price.

Sur’s optimism is backed by institutional buying. Rafferty Asset Management increased its Micron holdings by 37.9% as of mid-August 2025, now controlling a $508.9 million stake. 

Not only is this a vote of confidence away from Wall Street’s opinion, but it is also a confirmation that these call option traders may actually be onto something.