Trump Sells Micron, Buys Nvidia: Smart Moves?
💡 Key Takeaway
Trump's accounts sold Micron and bought Nvidia, reflecting a bet on AI dominance over cyclical memory chips.
What Happened: Trump's AI Stock Trades
President Trump's investment accounts, managed by third-party managers, made over 6,100 stock trades year to date. Through May, they were net sellers of Micron Technology and net buyers of Nvidia.
Trump's net sales of Micron totaled $90,000 to $116,000. Micron stock has surged 1,860% since January 2023. Meanwhile, net purchases of Nvidia ranged from $246,000 to $3.7 million, with Nvidia up 1,340% since early 2023.
Micron reported exceptional Q2 fiscal 2026 results: revenue up 345% to $41.4 billion, with DRAM and NAND prices more than doubling. Non-GAAP net income soared over 1,200% to $25.11 per share. CEO Sanjay Mehrotra announced 16 multiyear contracts, locking in minimum pricing for 3-5 years, which should reduce cyclicality.
Nvidia reported Q1 fiscal 2027 revenue of $81.6 billion, up 85%, with data center sales driving growth. Non-GAAP net income rose 140% to $1.87 per share. The company is preparing to launch its Vera Rubin platform and RTX Spark superchip for PCs, expanding beyond data centers.
Why It Matters: AI Chip Race Heats Up
These trades highlight a key divergence in the AI chip market. Micron benefits from AI-driven demand for memory, but its cyclical nature poses risks. Wall Street expects earnings growth of 36% annually through fiscal 2029, but memory prices may drop by 2028. At 22 times earnings, Micron looks cheap, but the net selling by Trump's accounts suggests caution.
Nvidia, with over 80% GPU market share, is the AI infrastructure leader. Its Vera Rubin platform promises 10x better inference performance, and the RTX Spark PC chip targets a new market. Wall Street estimates 56% annual earnings growth, and the stock trades at 36 times adjusted earnings, with a median price target of $300 (42% upside).
For investors, Nvidia's dominant position and growth catalysts make it a compelling buy, while Micron's cyclicality and potential price declines warrant a more cautious approach. The trades reflect a bet on sustained AI demand and Nvidia's ability to maintain its edge.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Nvidia is a strong buy given its AI dominance and growth catalysts; Micron is a hold due to cyclical risks.
Nvidia's unmatched innovation, 80%+ GPU market share, and expansion into PCs position it for continued growth. Wall Street's 56% annual earnings growth estimate and 42% upside potential support a bullish stance. Micron's multiyear contracts improve stability, but the memory chip cycle and potential price declines by 2028 make it a riskier bet.
What This Means for Me
