Not Nvidia, Not AMD. Micron Could Be September's Biggest AI Winner or Loser.

The latest earnings season has been a solid one for artificial intelligence (AI) semiconductor companies, as healthy demand for data center infrastructure has driven impressive growth among chipmakers and chip designers.

This explains why the latest quarterly reports of Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) exceeded expectations. However, the market's attention will now turn to Micron Technology (NASDAQ: MU), which will release its fiscal 2026 fourth-quarter results on Sept. 30. While there is still some time to go before Micron releases its quarterly report, I think that this semiconductor stock could be the biggest mover among AI companies in September.

Let's look at the reasons why.

Image source: Micron Technology.

Nvidia and AMD's results clearly indicate that the AI trade is alive

The past couple of months have been turbulent for Micron stock investors. It has dropped 11% since releasing its fiscal Q3 results on June 24. However, recent results from AMD, Nvidia, and other semiconductor companies clearly indicate that AI infrastructure demand remains robust.

Nvidia reported a 106% year-over-year increase in revenue for the second quarter of fiscal 2027. What's more, the semiconductor bellwether notes that its revenue growth could land at a healthy 70% in fiscal 2028, well above the consensus estimate of 44%. However, Nvidia's growth could be stronger than that, as the company notes its forecast accounts for supply chain constraints.

AMD, on the other hand, posted a year-over-year jump of 50% in Q2 revenue. It projects a 41% increase in revenue for the current quarter. Importantly, AMD management believes that its long-term revenue could "grow substantially above our prior target of greater than 35%, and we expect to significantly exceed our $20 annual EPS target within our strategic timeframe."

AMD management also added that demand for high-performance computing could grow at an annual rate of 40% over the long term, presenting a $2 trillion revenue opportunity for chipmakers in 2030.

These sunny forecasts from AMD and Nvidia bode well for Micron. After all, Micron sells a critical component that helps the AI chips designed by Nvidia and AMD to perform tasks seamlessly. The dynamic random access memory (DRAM) chips that Micron manufactures help transport massive amounts of data rapidly to AI accelerators while maintaining low power consumption.

So, Nvidia and AMD's chips don't have to sit idle and wait for data, thanks to Micron's chips. Not surprisingly, these chip designers are packing large amounts of high-bandwidth memory (HBM) into their chips. Nvidia's NVL72 rack-scale server system carries more than 20 terabytes (TB) of HBM. AMD, on the other hand, is offering 31 TB of HBM on its Helios rack-scale system.

Strong shipments of these AI server racks should ensure that the demand for Micron's memory remains solid, especially because manufacturing HBM requires nearly 4x more wafer capacity over traditional memory chips. Also, Nvidia noted on the latest earnings call that the capital expenditures of the top five U.S. hyperscalers could increase from $800 billion this year to $1.3 trillion in 2027.

As such, the stage seems set for a strong rally in Micron stock in September, ahead of its earnings report. A big reason that's likely to be the case is its extremely attractive valuation.

Micron's valuation suggests that the stock is poised for a breakout in September

Micron is priced like a value stock even though it has been clocking exponential growth. Analysts are expecting its revenue to jump by a whopping 348% year over year in fiscal Q4 to $50.8 billion. Earnings per share, meanwhile, could increase by more than 10x year over year to $31.28.

However, Micron's price-to-earnings ratio is just 21, suggesting the market isn't pricing in its tremendous growth potential. The forward earnings multiple of 6 is even cheaper. For a company that's expected to clock triple-digit earnings-per-share growth over the long run, Micron's valuation clearly suggests that it could make a parabolic move.

Moreover, Micron is expected to clock significantly faster growth than Nvidia and AMD, and it is way cheaper than both.

Data by YCharts

All this makes Micron a top AI stock to buy right now, as September could bring about a turnaround in its fortunes.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.