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Nvidia Corp (Nasdaq: NVDA) is up another 4.0% on Thursday after a Mizuho analyst said it could hit $1,000 per share in the coming months.

Micron stock has upside to $112

But if valuation is a concern that keeps you from taking a position in Nvidia stock – Toshiya Hari of Goldman Sachs recommends that you own Micron Technology Inc (Nasdaq: MU) instead.

He sees MU as an underappreciated artificial intelligence beneficiary even though it has already close to doubled over the past twelve months.

Hari’s “buy” rating on Micron stock is coupled with a $112 price objective that suggests a 17% upside on its previous close.

His bullish call arrives only days before Micron is scheduled to report its quarterly financial results. Consensus is for it to lose 43 cents a share versus $2.03 per share a year ago.

MU to benefit from a pick up in HBM revenue

The Goldman Sachs analysts is positive on Micron stock because it has underperformed its compute and networking peers since the start of this year.

Last month, the Nasdaq-listed chipmaker announced to have started mass production of its HBM3E solutions (read more) that Hari expects will meaningfully boost revenue moving forward. His research note also reads:

$MU is well-positioned to benefit from proliferation of AI across data centres (i.e. the core) and the edge (e.g. PCs, smartphones) as demand for more compute drives an increase in content.

Note that Micron does also pay a small dividend yield that nonetheless makes up for an additional reason to have it in an investment portfolio.

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