The generative artificial intelligence sector significantly boosted the Nasdaq-100 index, which saw a 20% increase in 2025. This growth highlights the increasing importance of AI hardware companies. Micron Technology, a leader in memory chips, experienced nearly 400% share growth and holds an attractive valuation amidst high demand for its high-bandwidth memory. Broadcom, another key player, reported a 74% jump in AI semiconductor revenue to $6.5 billion in Q4, attracting clients like OpenAI for its custom AI chips.
Expanding cloud infrastructure is crucial for AI development, and Oracle plans to raise $45 billion to $50 billion this year to meet this demand. Major clients benefiting from Oracle's cloud expansion include AMD, Meta, Nvidia, OpenAI, TikTok, and xAI. However, this substantial funding plan has raised investor concerns about Oracle's increasing debt load, with analysts from Jefferies warning of potential short-term margin impacts and free cash flow not turning positive until fiscal year 2029.
AI infrastructure spending is projected to reach almost $1.4 trillion in 2026, a 41% increase. Marvell Technology, a semiconductor company, is a strong contender in this space, creating custom AI processors (ASICs) for major clients such as Amazon and Microsoft. Its addressable market could grow to $94 billion by 2028, with earnings predicted to jump 80% this fiscal year. Meanwhile, ServiceNow is establishing itself as a primary platform for enterprise AI, helping businesses enhance productivity.
Nvidia, after significant growth from 2023 to 2025, saw its stock rise 39% in 2025. Wall Street analysts anticipate robust revenue growth of 63% for fiscal year 2026. Nvidia also strategically invested $2 billion in CoreWeave, an AI data center company, after its shares had fallen. Other notable investments include $1 billion for Groq and $4.9 billion for Intel, reflecting CEO Jensen Huang's approach to acquiring promising AI companies during market dips.
Powering AI data centers demands immense electricity, with demand expected to surge 165% by 2030. Constellation Energy, operating 21 nuclear reactors, is positioned to meet this need, having announced in September 2024 the restart of a Three Mile Island nuclear reactor to power a Microsoft AI data center. NextEra Energy, a large utility focused on renewable energy, is also becoming a key partner for AI companies. Separately, Salesforce, despite a 33.7% stock dip in 2025, remains profitable with 9% revenue growth in Q3 2025, and its valuation now aligns with competitors like Microsoft and Oracle, suggesting a potential rebound in 2026.
Key Takeaways
- The Nasdaq-100 index grew 20% in 2025, largely driven by excitement around generative artificial intelligence.
- Micron Technology is a top AI hardware stock for 2026, with shares rising almost 400% and high demand for its high-bandwidth memory.
- Broadcom's AI semiconductor revenue jumped 74% to $6.5 billion in Q4, with OpenAI among its clients for custom AI chips.
- Oracle plans to raise $45 billion to $50 billion to expand its cloud infrastructure for major AI customers including AMD, Meta, Nvidia, and OpenAI, leading to investor concerns about increasing debt.
- Marvell Technology, a semiconductor company, creates custom AI processors (ASICs) for clients like Amazon and Microsoft, with its addressable market potentially growing to $94 billion by 2028.
- Nvidia's stock growth slowed in 2025, but analysts predict 63% revenue growth for fiscal year 2026, and the company invested $2 billion in CoreWeave.
- ServiceNow is becoming a leading platform for enterprise AI, helping businesses achieve productivity gains.
- Salesforce stock dropped 33.7% in 2025 but remains profitable, with Q3 2025 revenue up 9%, and its valuation is now comparable to Microsoft and Oracle.
- AI data center electricity demand is projected to grow 165% by 2030, with Constellation Energy restarting a Three Mile Island nuclear reactor to power a Microsoft AI data center.
- NextEra Energy, a large utility focused on renewable energy, is positioned to be a key partner in powering AI data centers.
Micron and Broadcom are Top AI Hardware Stocks for 2026
The Nasdaq-100 index grew 20% in 2025, largely due to excitement around generative artificial intelligence. Investors should focus on AI hardware companies like Micron Technology and Broadcom for 2026. Micron, a leader in memory chips, saw shares rise almost 400% and has a low valuation despite high demand for its high-bandwidth memory. Broadcom makes custom AI chips, attracting clients like OpenAI, and its AI semiconductor revenue jumped 74% to $6.5 billion in Q4. Micron appears to be the stronger investment due to its attractive valuation and expected memory shortages.
Micron and Broadcom are Top AI Hardware Stocks for 2026
The Nasdaq-100 index grew 20% in 2025, largely due to excitement around generative artificial intelligence. Investors should focus on AI hardware companies like Micron Technology and Broadcom for 2026. Micron, a leader in memory chips, saw shares rise almost 400% and has a low valuation despite high demand for its high-bandwidth memory. Broadcom makes custom AI chips, attracting clients like OpenAI, and its AI semiconductor revenue jumped 74% to $6.5 billion in Q4. Micron appears to be the stronger investment due to its attractive valuation and expected memory shortages.
Micron and Broadcom are Top AI Hardware Stocks for 2026
The Nasdaq-100 index grew 20% in 2025, largely due to excitement around generative artificial intelligence. Investors should focus on AI hardware companies like Micron Technology and Broadcom for 2026. Micron, a leader in memory chips, saw shares rise almost 400% and has a low valuation despite high demand for its high-bandwidth memory. Broadcom makes custom AI chips, attracting clients like OpenAI, and its AI semiconductor revenue jumped 74% to $6.5 billion in Q4. Micron appears to be the stronger investment due to its attractive valuation and expected memory shortages.
Oracle Stock Drops After Announcing $50 Billion AI Cloud Plan
Oracle's shares fell about 4% in premarket trading after the company announced plans to raise $45 billion to $50 billion this year. This money will expand its cloud infrastructure to meet demand from big clients. Major customers include AMD, Meta, Nvidia, OpenAI, TikTok, and xAI. Investors worry about Oracle's increasing debt load from this large funding plan.
Oracle Stock Drops After Announcing $50 Billion AI Cloud Plan
Oracle's shares fell after the company announced plans to raise $45 billion to $50 billion. This funding will expand its cloud capacity for major AI customers like AMD, Meta, Nvidia, OpenAI, TikTok, and xAI. Investors are concerned about the rising debt and whether AI spending will lead to lasting demand. Analysts from Bernstein believe the funding mix will help Oracle's credit rating. However, Jefferies analysts warn that margins could be affected in the short term, and free cash flow may not turn positive until fiscal year 2029.
Marvell Technology is a Hidden AI Stock Gem for 2026
AI infrastructure spending is expected to reach almost $1.4 trillion in 2026, a 41% increase. Marvell Technology, a semiconductor company, is a strong but often overlooked player in this growth. Marvell creates custom AI processors called ASICs, which are in high demand for AI data centers. The company works with major clients like Amazon and Microsoft and also provides networking and storage components. Marvell's addressable market could grow to $94 billion by 2028, and its earnings are predicted to jump 80% this fiscal year.
Nvidia Stock Poised for Strong Growth in 2026
Nvidia's stock saw huge growth from 2023 to 2025, but its rise slowed to 39% in 2025. However, Wall Street analysts predict strong revenue growth of 63% for fiscal year 2026 and 52% for fiscal year 2027. Analysts expect Nvidia to earn $7.66 per share next year. If the stock maintains its current P/E ratio of 46, its price could reach $352, an 87% return. This suggests Nvidia is ready for a much better performance in 2026.
ServiceNow Becomes Top Platform for Enterprise AI
ServiceNow is seen as a strong investment because its platform is becoming the main operating system for AI in businesses. Its unique design helps companies gain productivity, even as traditional software use changes. The company's success comes from its strong platform, steady growth, and increasing use by businesses. ServiceNow's smart market position and new products help it meet the demand for digital changes. This gives ServiceNow a competitive edge and potential for long-term value.
Nvidia Invests $2 Billion in CoreWeave AI Company
Nvidia recently made a $2 billion investment in CoreWeave, an AI data center company. This investment came after CoreWeave's shares had fallen by nearly 50%. Nvidia also made other deals, including $1 billion for Groq and $4.9 billion for Intel. Deutsche Bank upgraded CoreWeave to $140 per share, but also suggested the rapid growth phase for AI might be slowing down. Nvidia's CEO Jensen Huang appears to be a smart investor, buying promising AI companies when their stock prices are lower.
Constellation Energy Powers AI with Nuclear Energy
AI data centers require a huge amount of electricity, with demand expected to grow 165% by 2030. Constellation Energy is well-positioned to meet this need as the largest producer of carbon-free electricity in the nation. The company operates 21 nuclear reactors, which make up 86% of its power output. In September 2024, Constellation announced it would restart a Three Mile Island nuclear reactor to power a Microsoft AI data center. The company can quickly increase its electricity production and expects faster revenue growth this year and next.
NextEra Energy Poised to Power AI Data Centers
The AI revolution is creating a huge demand for electricity to power data centers. NextEra Energy, a large Florida-based utility, is becoming a key player in this market. The company has invested heavily in renewable energy like solar and wind power. This focus on clean energy and its extensive infrastructure make NextEra an ideal partner for AI companies. Analysts believe NextEra's strong financial position and regulatory knowledge will help it greatly benefit from the AI boom.
Salesforce Stock May Rebound in 2026 After 2025 Dip
Salesforce stock dropped 33.7% in 2025, mainly because it did not meet revenue growth expectations. Despite this, the company remains strong, growing, and very profitable. Salesforce provides cloud and AI-powered software that helps businesses with sales and customer management. In the third quarter of 2025, its revenue increased 9%, with a 78% gross profit margin and 17% operating cash flow growth. Its current stock valuation is now similar to competitors like Microsoft and Oracle, suggesting it is undervalued and ready for a comeback in 2026.
Sources
- My Top Artificial Intelligence (AI) Stocks to Buy in 2026
- My Top Artificial Intelligence (AI) Stocks to Buy in 2026
- My Top Artificial Intelligence (AI) Stocks to Buy in 2026
- Oracle shares fall as investors assess up to $50 billion AI funding plan
- Oracle shares fall as investors assess up to $50 billion AI funding plan
- The Artificial Intelligence (AI) Winner Hiding in Plain Sight for 2026
- Is This Artificial Intelligence (AI) Winner About to Take Off in 2026?
- ServiceNow: Becoming The Go-To Platform For AI
- NVIDIA Just Made Another Smart Bet on AI
- Forget Tech Stocks: The Utility That's Solving AI's Biggest Problem
- This utility stock could be the next big AI winner
- This Beaten-Down AI Stock Could Stage a Comeback in 2026
Comments
Please log in to post a comment.