Not Micron, Not Nvidia. This Artificial Intelligence (AI) Giant Could Be the Ultimate Winner of the AI Arms Race
Keithen Drury, The Motley Fool
Fri, August 7, 2026 at 6:50 PM GMT+5:30
4 min read
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Determining an ultimate winner of the artificial intelligence (AI) arms race isn’t really possible right now. We’re right in the middle of it, and there’s no telling what the long-term effects will be. However, I think there is one company that could eventually be declared the winner in the AI arms race
While some may point to companies like Nvidia (NASDAQ: NVDA) or Micron Technology (NASDAQ: MU), I think there are some long-term issues with these two that prevent them from being named the ultimate winner. Instead, I think Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will take the crown
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Why not Nvidia or Micron?
The real question is, what will define the ultimate winner? If it’s purely based on stock performance from low to high, then Nvidia and Micron may have an argument. But if it’s long-term, sustained performance, it becomes a bit difficult to defend these two
Nvidia, the company that has been the definitive AI build-out stock, makes GPUs and various products to support its computing ecosystem. Right now, these units are in extreme demand, and Nvidia cannot build fast enough to meet the needs of AI hyperscalers. Eventually, there won’t be as high a demand for its computing re new data centers will pop up from time to time, they won’t match the current pace of data center build-outs
Micron is in even more of a squeeze. It produces memory chips, which are in tight supply. This has caused memory chip prices to skyrocket, boosting Micron’s profits and earnings. Micron and its peers are building new production capacity to solve this shortage, but that could also have a negative effect on pricing as supply becomes more abundant. This could be a problem for Micron over the next few years, which is why it may not be the ultimate winner of the AI arms race
Alphabet has a rock-solid approach to AI
Instead, I’d propose that Alphabet is in a great spot. Alphabet has placed several bets in the AI sector, and sometimes they compete against each other. On one hand, Alphabet is developing its own large language models and integrating them into its family of products. This has the potential to blossom into a major business component someday, but it’s still likely to lose money right now
