Micron Technology is emerging as a significant player in the AI chip market, with analysts like Beth Kindig of the I/O Fund naming it a top AI chip stock for 2026, potentially outperforming Nvidia. The company, a leader in DRAM and NAND memory, is seeing its High Bandwidth Memory (HBM) solutions in high demand, leading to a supply shortage and soaring prices. Micron's revenue jumped 57% in its fiscal first quarter, and its current HBM supply is already sold out for this year, positioning it for strong returns.
The HBM market is projected to grow 40% annually through 2028, potentially reaching $100 billion. Taiwan Semiconductor Manufacturing (TSMC) is also highlighted as a strong AI investment, leading in logic chip production for companies like Nvidia and Apple, with expectations of 50% or more AI chip growth through 2029. Qualcomm is expanding its AI presence, planning 150 Snapdragon-powered AI PC designs through 2026, alongside growth in its automotive and data center segments.
While some companies are thriving, Nvidia's stock recently experienced a drop, falling 3.5% in premarket trading after a 6.7% decline, due to investor concerns about geopolitical risks and the long-term sustainability of the AI boom. In contrast, AMD stock rallied following reports that Meta Platforms plans to increase its use of AMD's AI chips, as Meta develops its own custom silicon to reduce dependence on Nvidia.
The immense demand from AI data centers is driving a massive increase in electricity needs, with US data centers requiring an additional 60 gigawatts by 2030. Energy companies like Brookfield Renewable have secured major power purchase agreements with Microsoft and Google. NextEra Energy also has significant partnerships with Google and Meta Platforms, while Williams plays a crucial role in gas infrastructure.
Globally, AI chip startups raised $3 billion in Q4 2025, with over $1 billion specifically for AI hardware in data centers. In China, domestic AI chip development is surging, with Cambricon becoming the country's most valuable AI company, reaching an $88 billion valuation. Moore Threads and MetaX also hold significant valuations, with MetaX achieving end-to-end domestic production of high-end GPUs.
Beyond hardware, Amazon is considered a strong AI investment for 2026, with its Amazon Web Services (AWS) expected to capture a large share of the AI infrastructure market. Vertus, an AI-driven trading company, surpassed $1 billion in daily transaction volume on November 25, 2025, reporting a 51.15% return in 2025. However, AppLovin shares dropped significantly following allegations of enabling money laundering and distributing scam apps, adding to existing scrutiny.
Key Takeaways
- Micron Technology is a top AI chip stock pick for 2026, with its High Bandwidth Memory (HBM) supply sold out and revenue growth of 57% in Q1 fiscal 2026.
- The HBM market is projected to grow 40% annually through 2028, potentially reaching $100 billion.
- Taiwan Semiconductor Manufacturing (TSMC) leads in logic chip production for companies like Nvidia and Apple, expecting 50% or more AI chip growth through 2029.
- Qualcomm plans 150 Snapdragon-powered AI PC designs through 2026, expanding its AI presence in various segments.
- Nvidia's stock dropped due to investor concerns regarding geopolitical risks and the sustainability of the AI boom.
- AMD stock rallied following reports that Meta Platforms plans to increase its use of AMD's AI chips.
- AI data centers will require an additional 60 gigawatts of electricity by 2030, benefiting energy companies like Brookfield Renewable (partnering with Microsoft, Google) and NextEra Energy (partnering with Google, Meta).
- AI chip startups raised $3 billion in Q4 2025, with over $1 billion allocated to AI-specific hardware for data centers.
- Cambricon is China's most valuable AI company, with an $88 billion valuation, reflecting strong domestic AI chip development.
- Amazon is considered a strong AI investment for 2026, with Amazon Web Services (AWS) expected to capture a large share of the AI infrastructure market.
Micron AI Chip Stock May Outperform Nvidia in 2026
Micron Technology is a leader in DRAM and NAND memory, benefiting greatly from the surging AI chip market. High Bandwidth Memory HBM, crucial for AI chips, faces a supply shortage, causing prices to soar. Micron's revenue jumped 57% and adjusted EPS increased nearly 2.7 times in its fiscal first quarter. The company expects the HBM market to grow 40% annually through 2028, reaching $100 billion. Micron's current supply is already sold out for this year, positioning it for strong returns in 2026.
Analyst Picks Micron as Top AI Chip Stock for 2026
Beth Kindig of the I/O Fund named Micron Technology as her top AI chip stock for 2026, believing it could outperform Nvidia. Micron was a top performer in the Nasdaq-100 last year, with a 239% gain. The company's high bandwidth memory HBM solutions are essential for the growing AI infrastructure. Micron is seeing significant revenue acceleration and rising gross profit. Despite its strong performance, Micron stock still trades at a modest valuation, making it an attractive option for investors.
Taiwan Semiconductor and Micron are Top AI Stock Picks for 2026
Taiwan Semiconductor Manufacturing and Micron Technology are highlighted as two strong AI investment opportunities for 2026. Taiwan Semiconductor leads in logic chip production for companies like Nvidia and Apple, expecting AI chip growth of 50% or more through 2029. Micron specializes in memory chips, including high bandwidth memory HBM, which is in huge demand for AI computing. Micron is doubling its revenue quarterly and expects the HBM market to grow 40% annually through 2028. Both companies are crucial to the AI industry and offer attractive valuations.
Micron and Qualcomm Could Lead Next AI Bull Market
Micron Technology and Qualcomm are identified as potentially leading the next bull market in AI, offering reasonable valuations. The global AI market is projected to grow from $390.9 billion in 2025 to $3.5 trillion by 2033. Micron reported 56% revenue growth in Q1 fiscal 2026, with demand for its memory solutions exceeding supply due to AI infrastructure buildout. Qualcomm is expanding its AI presence with 150 Snapdragon-powered AI PC designs planned through 2026 and significant growth in automotive and data center segments. Both companies show strong financial performance and are well-positioned for future AI growth.
Micron Stock Could Skyrocket in 2026 Due to High AI Demand
Micron Technology, a key provider of memory chips, is seen as a potentially undervalued AI stock that could soar in 2026. Despite its cyclical nature, demand for memory, especially high bandwidth memory HBM, is at an all-time high due to AI. Micron trades at just 10 times forward earnings, with analysts expecting 133% growth next quarter and 100% growth for fiscal year 2026. The company is "more than sold out," and new production facilities will not be online until mid-2027 at the earliest. This supply shortage is expected to drive memory prices higher, boosting Micron's profitability, with Q2 gross margin projected at 67%.
Micron Stock Could Skyrocket in 2026 Due to High AI Demand
Micron Technology, a key provider of memory chips, is seen as a potentially undervalued AI stock that could soar in 2026. Despite its cyclical nature, demand for memory, especially high bandwidth memory HBM, is at an all-time high due to AI. Micron trades at just 10 times forward earnings, with analysts expecting 133% growth next quarter and 100% growth for fiscal year 2026. The company is "more than sold out," and new production facilities will not be online until mid-2027 at the earliest. This supply shortage is expected to drive memory prices higher, boosting Micron's profitability, with Q2 gross margin projected at 67%.
AI Chip Startups Raise 3 Billion Dollars in Q4 2025
Startup funding for AI chips and AI chip design soared in Q4 2025, with 75 companies raising a total of $3 billion. Over $1 billion alone went into AI-specific hardware for data centers. The quarter saw 12 funding rounds of $100 million or more, a significant increase from previous quarters. Notable companies receiving funding include Celero Communications for optical connectivity DSPs and Movandi for RF and mmWave chipsets. Magics Technologies secured ā¬9.7 million for radiation-hardened ICs, while Unconventional AI received investment for analog AI chips.
Vertus AI Trading Reaches 1 Billion Daily Volume in 2025
Vertus, an AI-driven trading company, announced it surpassed $1 billion in daily transaction volume on November 25, 2025, and now regularly maintains this level. The company reported an impressive 51.15% return in 2025, with a strong Sharpe ratio of 2.13, indicating high returns without excessive risk. These performance metrics were independently audited by Alpha Performance Verification Services. Vertus's systems, developed in the Isle of Man, are currently used by various financial institutions. The company plans to expand its advanced reasoning architecture into other complex fields beyond finance.
Cambricon Leads China AI Chip Market with 88 Billion Dollar Valuation
Chinese AI chipmaker Cambricon is now China's most valuable AI company, according to the Hurun Research Institute's 2025 ranking. Its valuation surged 165% to $88 billion, reflecting strong investor confidence in domestic AI chip development. Moore Threads ranked second with a $43 billion valuation, followed by MetaX at $35 billion. MetaX is notable for achieving end-to-end domestic production of high-end GPUs. This ranking highlights China's efforts to build a self-sufficient AI hardware and software ecosystem amidst US export controls on advanced semiconductors.
Energy Companies Powering the AI Gold Rush
The growing demand from AI data centers requires a massive increase in electricity, with US data centers needing an additional 60 gigawatts by 2030. Three energy companies are well-positioned to benefit from this surge. Brookfield Renewable, a global leader in clean energy, has secured major power purchase agreements with Microsoft and Google. NextEra Energy, the country's largest electric utility and a top renewable energy developer, also has significant partnerships with Google and Meta Platforms. Williams, a leading gas infrastructure company, plays a crucial role in delivering energy across the US.
AMD Stock Rises on Meta AI Chip Deal Reports
AMD stock saw a rally following reports that Meta Platforms plans to increase its use of AMD's AI chips. Meta is developing its own custom silicon to reduce its dependence on Nvidia, and already has a close relationship with AMD. This potential deal highlights AMD's growing importance in the AI chip market. Wall Street analysts currently rate AMD as a Strong Buy, with 24 Buy ratings and eight Hold ratings in the past three months.
Nvidia Stock Drops Amid AI Boom Concerns
Nvidia stock experienced a significant drop, falling 3.5% in premarket trading on Tuesday after a 6.7% decline on Monday. This downturn reflects growing concerns among investors about geopolitical risks and the long-term sustainability of the AI boom. Analysts are suggesting that the rapid growth in AI demand may be slowing or facing new challenges. While Nvidia has seen stellar performance from its high-performance GPUs, worries about supply chain issues, increased competition, and the economic viability of AI investments are now impacting the stock.
AppLovin Stock Falls After Money Laundering Allegations
AppLovin shares have dropped significantly, falling 15% over three trading sessions and another 8% in premarket trading. This decline follows a report from CapitalWatch accusing the company of enabling money laundering through connections to Asian criminal networks. The report alleges that major shareholder Hao Tang and his associates injected billions in illegal funds into AppLovin, bypassing anti-money laundering regulations. CapitalWatch also claims AppLovin's algorithms distribute scam apps and that a hidden team in China handles US user data. These new allegations add to previous short-seller attacks and an ongoing SEC investigation into AppLovin's data practices.
Bernstein Calls Amazon a Strong AI Investment for 2026
Bernstein SocGen Group analyst Nikhil Devnani named Amazon as one of the strongest AI investment opportunities for 2026. On January 15, Devnani reiterated an "Outperform" rating with a $300 price target, seeing 2026 as the strongest bull case since the pandemic. Amazon Web Services AWS is expected to greatly benefit from the AI boom, capturing a large share of the AI infrastructure market. The company's e-commerce, logistics, and advertising businesses are also projected to contribute positively to its overall performance. This optimistic view is based on Amazon's strong execution, large customer base, and ongoing innovation.
Sources
- The Overlooked AI Chip Stock That Could Outperform Nvidia in 2026
- A Wall Street Analyst Just Revealed Her Top Artificial Intelligence (AI) Chip Stock for 2026 -- and It's Not Nvidia. Here's Why I Think She Could Be Right.
- 2 Clear AI Winners Investors Should Buy for 2026
- These AI Stocks Could Lead the Next Bull Market, and They Are Still Cheap
- 1 Dirt Cheap Artificial Intelligence Stock That Could Skyrocket in 2026
- 1 Dirt Cheap Artificial Intelligence Stock That Could Skyrocket in 2026
- Startup Funding: Q4 2025
- Vertus Hits $1 Billion Daily AI Trading Volume And Posts 51.15% 2025 Return With 2.13 Sharpe
- China AI chipmaker Cambricon tops Hurun 2025 AI ranking with $88 billion valuation
- The AI Gold Rush Needs Energy: 3 Stocks That Could Benefit Most
- AMD Stock Jumps on Reports of an AI Chip Deal with Meta
- Nvidia Stock Falls. āThe Honeymoon Is Over for AI.ā
- AI Darling to Crime World Laundromat? AppLovin Tanks on Short-Seller's Bombshell Report
- Amazon (AMZN) seen as one of the strongest AI bull cases heading into 2026, Bernstein says
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