Nvidia and Micron Stock Price Declines Drive Investor Interest

In July 2026, shares of several major artificial intelligence sector companies declined by 12% to 30%. Despite this, analysts believe the price reduction creates a favorable opportunity for investors. Among them, Nvidia and Micron are particularly highlighted.

Micron's situation is positively affected by a memory chip deficit, which is driving up market prices. According to analysts' forecasts, the company's revenue will grow by 80% in 2027.

Despite expected declining demand for artificial intelligence, Micron states that the chip deficit will continue beyond 2027. Additionally, demand for technologies required for artificial intelligence is likely to grow further through 2030.

Nvidia is closely linked with Micron, as the company uses its memory chips in its own graphics processors. Global spending on data centers amounts to $650 billion in 2026, and could reach $1 trillion in 2027.

A large portion of Nvidia's 2027 orders are already pre-booked. Moreover, the company's shares are now trading at a lower price relative to expected earnings compared to the average price of shares of companies within the S&P 500.

Analysts forecast 42% growth for Nvidia in 2027. According to their assessment, the company's future potential is not yet fully reflected in the stock price.

Source: Yahoo Finance