At first glance, contemplating stocks that could do better than Nvidia may seem at odds with current trends in tech. Nvidia is the undisputed leader of the lucrative artificial intelligence (AI) accelerator market. With the AI chip market expected to grow at a compound annual growth rate (CAGR) of 29% through 2030, Nvidia is likely to continue outperforming the market.
Unfortunately for Nvidia, at a $4.6 trillion market cap, doubling the stock price once would take the market cap to $9.2 trillion. This is significant, as Nvidia is the only company whose market cap ever exceeded $5 trillion.
Thus, investors may want to consider smaller companies that can more easily achieve higher-percentage growth, and to that end, these companies could outperform Nvidia. Here are two to watch.
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1. Micron
Micron (MU 3.21%) develops high-bandwidth memory (HBM), and this product is heavily in demand due to the boom in AI-capable data centers.
Admittedly, the stock often struggled in past years, as the memory industry is objectively more cyclical than the tech industry at large.
However, the aforementioned CAGR in AI chips should blunt the impact of industry cycles. Moreover, Micron is one of the "big three" companies manufacturing HBM, giving it a competitive advantage.
Consequently, in the first quarter of fiscal 2026 (ended Nov. 27), revenue of $13.6 billion rose 57% compared to year-ago levels.
Micron also kept costs and expenses in check over that time. As a result, its $5.2 billion in net income was far above the $1.9 billion earned in the same quarter last year. Additionally, analysts forecast a doubling of revenue during the fiscal year.
NASDAQ: MU
Key Data Points
Amid such conditions, the 250% rise in the stock price (which took its market cap to just over $340 billion) over the last year makes sense. With that, its price-to-sales (P/E) ratio is at 34, barely above the S&P 500 average of 31. Considering the company's growth levels, that valuation implies the stock's rapid growth should continue for the foreseeable future.
2. AMD
Another AI giant that has a significant shot at outperforming Nvidia is Advanced Micro Devices (AMD 3.46%), mainly because it is arguably best positioned to compete against the AI accelerator giant.
AMD, which currently has a market cap around $380 billion, expects to release its MI450 AI accelerator later this year. According to the company, it could outperform Nvidia's upcoming Vera Rubin platform, and since AMD's accelerators are significantly less expensive than Nvidia's, that could significantly increase AMD's market share.
Additionally, AMD also operates client, gaming, and embedded segments, and those segment's performances have improved significantly in recent quarters.
Consequently, AMD's $9.2 billion in revenue in the third quarter of 2025 grew by 36% yearly. That led to net income of $1.2 billion in the same quarter, and the 61% yearly profit growth was close to Nvidia's 65% net income increase over an overlapping period.
That also implies that if the MI450 makes competitive gains, it could begin to grow profits faster than its larger rival.
NASDAQ: AMD
Key Data Points
Indeed, its 115 P/E ratio may not portray AMD's valuation favorably. Nonetheless, the forward P/E of 35 implies that AMD can grow its profits rapidly. That is also a low-enough valuation that could inspire investors to take its stock price to a much higher level.
