If You Missed Nvidia Stock, This is Way Bigger

If you had invested $10,000 into AMD stock four years ago, you would have $82,800 today. But if you had invested $10,000 into Nvidia stock instead, you would have $169,400 today. Better yet, if you had invested $10,000 in Micron stock, you would have over $200,000 today. All of these companies make AI chips that data centers use to power AI models like Open AI's Chat GPT and Anthropics Cloud. But looking at the stock market today, I'm going to do a full stock analysis on each of these stocks to show you which one should outperform the rest in the future. My name is Stock Curry. I'm a former Maril Lynch and Morgan Stanley investment banker and I've been trading for over 25 years. So, let's dig into each of these three stocks and do some stock analysis on each one as well as come up with some stock price predictions so that we can determine which of these is the best AI stock to buy. Now, we'll start with Nvidia, ticker NVDA, which has been the most popular stock to buy over the past 4 years. Technically, if you look at the weekly chart on NVDA, you'll notice a strong ascending wedge pattern forming. Ascending wedges are actually bearish and indicate a future decline coming. Now, unfortunately, wedges aren't great at helping us time the decline, but it is important to understand that technically Nvidia is going to fall at some point and it's most likely going to fall pretty hard. Based upon the current valuation, Nvidia is poised to fall about 35% during the next correction in the stock market. But because of Nvidia's parabolic rate of growth, it remains an incredible stock to own. You might just get an opportunity to buy it at a 35 to 40% discount if you're patient enough to wait for a correction. AI spend is slowing down and that means growth in AI stocks might pause next year which could provide the dip buying opportunity so many people are waiting for. JP Morgan Chase wrote in August that broad-based productivity gains in the US, which leads the AI race, remain elusive, raising questions about the sustainability of AI stock price valuations. Historical precedent suggests that technologydriven booms often end when infrastructure buildouts cease to deliver sufficient returns. Using the example of Nvidia, the US company whose chips are the backbone of the AI revolution, JP Morgan estimates US productivity gains would need to be 3 to 5% annually over the next 10 years to justify Nvidia's stock price valuation. That would be a substantial increase from the baseline expectation of the US Congressional Budget Office of only 1.75% annual productivity growth over the next 10 years. And the last time investors got even mildly spooked about high capex spending that was not resulting in higher profits with AI infrastructure buildouts. Stocks fell by about 5%. And any future spooking of investors could provide the selloff investors need in order to buy Nvidia at a reasonable price. Still, every single analyst covering Nvidia expects the stock to be higher 12 months from now. 100% of the analysts covering Nvidia rate the stock a buy. And the most bullish analyst sees NVDA going to $465 12 months from now, which would result in the stock doubling in price over the next 12 months. So, there's no doubt Nvidia is a great stock to buy, but is it the best AI stock to buy? Now, before we answer that question, I wanted to let you know about Stock Dads. We are making unbelievable profits in Stock Dads every single day. We have over 20 full-time multi-millionaire traders who post every trade they make. And two of our traders are on track to make over a million dollars this year. Regular people just like you are copying our trades and making money right along with us. Just one trade could make up for the price of the Discord for the entire year. So come join us in Stock Dads and start making money with us. You can learn more about Stock Dads using the first link in the description below or by scanning the QR code on your TV screen. Now, let's take a look at AMD, ticker AMD, to see how it compares to Nvidia. AMD started its rally more recently than Nvidia did, resulting in a more substantial recent rise. Technically, this puts AMD at the top of the trend, which strongly points to a decline coming soon. And while Nvidia's forward PE ratio is a little high at 25, AMD's valuation is insanely high with a forward PE ratio of 83. That makes AMD three times more expensive than Nvidia. But AMD's growth is rated an A with an annual revenue growth of 39% year-over-year and an annual profit growth of 75% year-over-year. So, does AMD's growth rate make up for its sky-high valuation? Unfortunately, no. AMD's revenue growth of 39% year-over-year is less than half that of Nvidia's 83% year-over-year revenue growth. And even AMD's profit growth of 75% year-over-year is less than Nvidia's profit growth of 104%. So, it makes sense that analysts aren't as bullish on AMD as they are on Nvidia. While most analysts still rate AMD a buy, their average one-year price target is only $659, which is basically flat from where AMD is today. And some analysts actually think AMD might fall over the next 12 months. Any way you look at it, AMD is just not as good of a stock to buy right now as Nvidia is. In fact, if it wasn't for the strong technical momentum AMD has right now, I might even be looking to short the stock. Based upon the technicals, AMD should fall to around $350 to $400 per share over the next 12 months. Even at that price, it would still be a very expensive stock to buy from a valuation standpoint, but it would be a technical bottom, which would make it a much safer investment. So, Nvidia is a good stock to buy and AMD is a good stock to sell. But what about Micron? Micron stock ticker MU has gone absolutely parabolic this year. Micron is up 272% year to date and Micron's rise has been so parabolic there's actually no good upper technical line that we can draw on this stock. There is however a strong lower support line which the stock price is currently near. So technically Micron is a strong buy. And if you thought Nvidia's revenue growth of 83% year-over-year and profit growth of 104% year-over-year was impressive, compare it to Micron. Micron's revenue growth is 256% year-over-year, which is three times higher than Nvidia's revenue growth. And Micron's profit growth is 51% year-over-year, which is nearly five times higher than Nvidia's profit growth. But is Micron stock five times better to own than Nvidia right now? AMD's growth rate is good also, but it's AMD's valuation that's making it a bad investment right now. Nvidia's valuation is better, but still a little bit high. So, how does Micron's valuation compare? Well, Micron is actually rated an A+ on valuation. Compared to Nvidia's forward PE ratio of 25, Micron's forward PE ratio is only six. That makes Micron four times cheaper than Nvidia. So, not only is Micron's profit growth five times higher than Nvidia's profit growth is, Micron is valued four times cheaper than Nvidia is. Overall, that makes Micron 20 times better of a stock to own than Nvidia. To put this into perspective, Micron is currently trading at around $1,000 per share. If Micron had the same valuation as Nvidia, the stock price would be over $4,000 per share. And if Micron had the same valuation as AMD, the stock price would be over $14,000 per share. Micron is growing profits five times faster than Nvidia and Micron is currently valued four times cheaper than Nvidia. And that is why Micron is the largest holding in my portfolio. Let me know in the comments below which stock you're holding and which stock you think is the best AI stock to buy now.