Nvidia won investors' respect this year with its off-the-hook revenue growth. But the S&P 500 AI champ is about to get bumped to second place.
Analysts think memory-chip maker Micron Technology will post 84.2% revenue growth in the fourth calendar quarter of the year — the quarter we're in now, says S&P Global Market Intelligence and MarketSurge. That outstrips the 72.1% quarterly revenue growth expected from Nvidia.
Seeing such robust growth is a reminder to investors that Nvidia isn't the only growth story in the S&P 500. And that's an easy point to overlook as shares of Nvidia are up a blistering 179% this year.
Looking At Micron Technology
Micron's chips are turning into a key part of data-hungry AI learning models. Analysts think the company's revenue will hit $8.7 billion this year. No other S&P 500 company is expected to grow as rapidly in the fourth quarter.
And don't assume Micron is just a fourth-quarter growth story. Analysts think its earnings per share will explode by 588% in 2025.
Investors, though, are taking a wait-and-see approach toward Micron stock. Its RS Rating is just 48 as shares are up 14.8% this year. Micron has a reputation for rocky earnings growth.
Sizing Up Fourth-Quarter S&P 500 Growth
Investors are gearing up for solid growth in the S&P 500 beyond Micron and Nvidia.
Analysts think S&P 500 companies as a group will report 4.7% revenue growth in the fourth quarter, FactSet says. And eight S&P 500 companies are expected to post quarterly revenue growth of 40% or more. That includes some less obvious AI plays like hard-drive makers Seagate and Western Digital.
But for now, Micron is the one to beat.
Top S&P 500 Revenue Growth
Revenue growth expected in the fourth calendar quarter of 2024
| Company | Ticker | Revenue growth | Sector |
|---|---|---|---|
| Micron Technology | MU | 84.2% | Information Technology |
| Nvidia | NVDA | 72.1% | Information Technology |
| Super Micro Computer | SMCI | 57.5% | Information Technology |
| Diamondback Energy | FANG | 55.9% | Energy |
| Eli Lilly | LLY | 49.8% | Health Care |
| Seagate Technology | STX | 49.3% | Information Technology |
| Blackstone | BX | 45.8% | Financials |
| Western Digital | WDC | 41.8% | Information Technology |
