Spending on artificial intelligence (AI) infrastructure is booming, with related capital expenditure (capex) expected to surpass $700 billion this year. While that is a staggering amount, Goldman Sachs said it doesn't see spending slowing next year, projecting it could reach between $920 billion and $1.4 trillion.
At $1.25 trillion, that would be about 3% of gross domestic product (GDP), which would still be below some past technology booms, including the U.S. and U.K. railroad build-outs in the late 1800s.
Let's look at three AI stocks to own as infrastructure capex continues to soar.
Image source: Getty Images.
1. Nvidia Nvidia (NVDA +0.15%) has been the biggest beneficiary of early AI infrastructure spending, and it remains well-positioned to be one of the biggest winners. The stock is also attractively valued, trading at a forward P/E of just 16 times fiscal 2028 (ending January 2028) analyst estimates.
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The company has been seeing extraordinary revenue growth, including 85% last quarter, as its graphics processing units (GPUs) remain the primary chip used to train AI models. It still has a wide moat in this area, as most early foundational AI code was written on its CUDA software platform.
Nvidia is also looking to be an important player in inference and agentic AI. Its "acquisition" of Groq gave it language processing units (LPUs), which are ideal for the decode phase of inference, while it has also introduced ARM-based CPUs, which can play a pivotal role in agentic AI.
Overall, Nvidia is set to remain one of the biggest winners from this AI infrastructure spending.
2. AMD While Advanced Micro Devices (AMD +4.91%) lost to Nvidia in AI model training, AMD is much better positioned for the emerging trends of inference and agentic AI. Inference is much less technical than AI model training, and AMD's ROCm software has improved significantly over the past few years, loosening CUDA's stranglehold in this area.
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The company's chiplet GPU design can also pack in more memory, which is important because inference constraints are generally memory-related rather than compute power. AMD already has two $100 billion GPU commitments related to inference, which should be a huge growth driver for the company in the coming year.
In addition to its opportunity in inference, AMD is also a leader in data center CPUs. This market is set to see explosive growth with the rise of agentic AI, which needs more CPUs to help manage the sequential reasoning required to power AI agents. As a result, the GPU-to-CPU ratio is expected to shift from 8:1 for training to 1:1 with agentic AI, with AMD predicting this could be a $120 billion market in a few years.
With the company riding two of the biggest trends in AI infrastructure, it looks like a big winner from this increasing spending.
3. Micron The memory market is booming, especially DRAM (dynamic random access memory), as GPUs and other AI chips need to be packaged with a special type of DRAM called high-bandwidth memory (HBM) to achieve optimal performance. The shift toward inference, which tends to be more memory-bound than compute-bound, only escalates the need for more memory.
As one of the big three DRAM makers, along with Korean companies SK Hynix and Samsung, Micron (MU 1.02%) has been riding higher DRAM prices to record revenue, gross margins, and profits.
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The entire DRAM market remains undersupplied, and with data center capex expected to continue surging, that dynamic is unlikely to change anytime soon, even as new capacity comes on.
Micron stock is inexpensive, trading at a forward P/E of 9 times fiscal 2027 (ending July 2027) estimates, and with the company starting to sign some longer-term contracts, it should help lessen some of the cyclicality in its business. That makes it a nice stock to own as AI capex continues to soar.
Companies have been making memory and storage solutions for decades, but it was artificial intelligence (AI) that recently woke up the sleepy sector. That's allowing specialized memory and storage providers like Micron Technology, Samsung Electronics, and SK Hynix to cash in.
Unfortunately for investors, owning those companies isn't the most straightforward. It costs nearly $1,000 to own a full share of Micron, while Samsung and SK Hynix are based in South Korea and do not offer American depository receipts (ADRs), making it more difficult for U.S. investors to own shares.
SK Hynix did recently file for a listing of ADRs on a U.S. exchange, but the exact timing of when shares could be listed is still unclear.
Nevertheless, there's a way to participate in the success of all three stocks immediately for less than $70: the Roundhill Memory ETF (DRAM 0.17%).
Image source: Getty Images.
The access DRAM provides The Roundhill Memory ETF launched on April 2 and, as of June 12, held 15 positions. Through total return swaps, which provide access to a stock through a derivative contract without ownership, and direct ownership, Micron is one of the top holdings in terms of portfolio weight of the exchange-traded fund (ETF).
Micron provides memory and storage solutions for personal computers, mobile phones, and the automotive industry, but shares have really taken off thanks to AI; the Micron stock price is up nearly 250% on the year. Micron offers a portfolio of data center memory solutions, which is helping drive record revenue. For the company's fiscal second quarter 2026 (ended Feb. 26), revenue for its core data center business unit was $5.6 billion, an increase of 211% from the $1.8 billion reported in the same period a year prior.
For Samsung, another top holding of the ETF, it also offers memory solutions like Micron. But unlike Micron, it focuses on more than just memory, providing a one-stop shop for logic, memory, foundry, and packing solutions. It recently launched samples of its high-bandwidth memory HBM4E chip, which companies like Nvidia and Alphabet need for AI accelerators. On the Korea Exchange (KRX), shares are up more than 150%.
Switching gears to SK Hynix, another significant holding in the RoundHill Memory ETF, it's more like Micron than Samsung in terms of purely focusing on advanced memory and storage offerings. In a big win for the company, it just landed a multi-year agreement with Nvidia to partner on AI memory chips. On the KRX, shares have jumped more than 200% for the year.
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The risks and rewards If the fervor for memory and storage stocks dies down, this ETF would be hit with losses particularly hard, as there's little room for it to hide. Just recently, shares dropped 17.7% from June 3 to June 10. That said, the memory and storage market is becoming less cyclical as AI creates constant demand, which creates a stronger backstop for memory and storage makers than they've had in the past.
Roundhill Memory holds some of the top memory and storage companies, offers access to Micron for less than $1,000, and gives U.S. investors a way to invest in SK Hynix and Samsung without dealing with international trading. As a small position in a well-rounded portfolio, the Roundhill Memory ETF can offer long-term upside for investors who can handle short-term volatility.
Nvidia (NVDA +0.15%) and Micron Technology (MU 1.02%) each have seen revenue soar amid this artificial intelligence (AI) boom. This is because these companies offer something that is crucial for the development and performance of this hot technology: compute power, and memory and storage.
Nvidia is the compute expert, designing the fastest graphics processing units (GPUs) around, while Micron offers the memory and storage necessary for AI tasks. Investors have recognized these companies' strengths and have rushed to get in on the stocks. As a result, Nvidia and Micron each have climbed more than 1,000% over the past five years.
Both of these companies are likely to win as this AI story continues to unfold. But if you could only invest in one today, which is the better AI growth buy? Let's find out.
Image source: Getty Images.
The case for Nvidia Nvidia is the leading designer of GPUs, the chips powering key AI tasks like the training and inference of AI models. Though rivals also offer compute, and in many cases are delivering revenue growth too, Nvidia remains a big step ahead. Companies may invest in a broad range of compute, but those who aim to win in AI generally rely at least partially on Nvidia's GPUs -- their high speed helps customers reach the finish line faster and may result in a lower total cost of ownership over time.
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But Nvidia doesn't rely on GPUs alone. The company offers a full portfolio of related products and services, and today it's in the process of entering another enormous market: the central processing unit (CPU) market. These are the chips that generally power all computers, and they are a key tool to fuel AI agents, the next area of AI growth. Nvidia is launching its first-ever stand-alone CPU this fall and is conquering the CPU for PC market with a new superchip. This may set it on track for leadership in this $200 billion market.
Nvidia also has designed products and services specifically for certain markets, from telecom to healthcare and robotics, which offers it a pretty significant revenue growth opportunity moving forward.
The case for Micron Micron, as mentioned, is an expert in memory and storage -- two critical elements for AI customers, particularly as the era of AI agents unfolds. AI agents go through a thought process and carry out steps, in many cases multiple steps, to solve a particular problem. For this, they clearly need compute power but also memory and storage.
Demand for these products has been so high that Micron recently reported records in revenue, gross margin, earnings per share, and free cash flow, and revenue from DRAM and NAND, two types of memory, increased in the triple digits.
"In the AI era, memory has become a strategic asset for our customers," the company said in the latest earnings update.
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Micron has noted increased adoption of AI agents in PCs and smartphones, a point that supports ongoing demand for the company's products.
The tech giant expects earnings records in the current quarter, the third fiscal quarter. Micron predicts free cash flow will "roughly double sequentially" in the period. And it forecasts third-quarter revenue of $33.5 billion, a record high for any quarter or year so far.
The biggest headwind for Micron at this point is supply -- due to supply constraints, it's unable to serve 100% of its customers' needs.
Which stock is the better buy? Though Nvidia and Micron both have climbed this year, Micron's advance is much steeper than that of Nvidia. It's soared more than 240%, while Nvidia has added 9% as of the June 11 market close.
Micron actually is cheaper than Nvidia: It trades for 16x forward earnings estimates, while Nvidia trades for 22x. But while Nvidia's valuation has fallen this year, Micron's has increased.
NVDA PE Ratio (Forward) data by YCharts
I think Micron is a great stock to own, but the run-up in its price and rising valuation suggest this player could be heading for a pullback at a certain point. Meanwhile, Nvidia, at today's valuation, offers investors a fantastic buying opportunity. And that's why, today, I think Nvidia is the better AI growth buy to add to a tech portfolio.
Memory specialist Micron Technology (MU 1.02%) is scheduled to report its fiscal third-quarter results on Wednesday, June 24, after the market closes. And expectations heading into the report are about as high as they get. Shares have surged 244% in 2026, crossing a $1 trillion market capitalization along the way -- a milestone only two other memory companies have reached.
That run has been powered by an artificial intelligence (AI) build-out that has turned memory chips into one of the most sought-after components in the data center, and Micron into one of its biggest beneficiaries. But a stock that has climbed this far, this fast, leaves little room for a stumble.
Put another way, the stakes are high. And when the company reports later this month, a single number may tell investors more about whether the story is still intact than any other line in the release.
That number is gross margin.
Here's a closer look at why this one metric carries so much weight -- and what to watch as the report approaches.
Image source: Getty Images.
Why gross margin is the number that matters When Micron last reported, in March, its results were staggering across the board. Fiscal second-quarter revenue (the period ended Feb. 26, 2026) nearly tripled year over year to $23.86 billion, marking a company record. But the figure that best captured what's happening inside the business was gross margin, which expanded to about 75% from roughly 37% a year earlier. That is an enormous swing for a memory company, and it speaks directly to pricing.
Memory has historically been a brutal, commodity-like business, with prices swinging sharply as supply and demand fall in and out of balance. What's different now is that AI demand has collided with tight industry supply, sending prices higher and lifting margins along with them. In the fiscal second quarter, Micron said DRAM prices sequentially rose in the mid-60% range, and NAND prices climbed in the high-70% range.
For the fiscal third quarter, management guided for gross margin to reach about 81%. That would mark yet another step up. And it explains why this is the make-or-break figure: revenue can grow on volume alone, but a gross margin approaching 81% is a direct readout of how much pricing power Micron still holds.
If that number comes in at or above guidance, it confirms the favorable pricing environment is holding. If it slips, it could signal that the best of the pricing cycle is already behind the company.
"We expect higher price, lower cost and favorable mix to all contribute to gross margin expansion in Q3," said Micron chief financial officer Mark Murphy in the company's fiscal second-quarter earnings call.
That is the bar the report will be measured against.
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The bull and bear cases The bull case rests on supply that simply can't keep up. High-bandwidth memory (HBM), a specialized type of DRAM that sits alongside AI processors, has become the tightest part of the chain -- and Micron has said its entire 2026 HBM supply is already sold out. That kind of visibility is rare for a chipmaker, and it suggests pricing could stay firm well into next year. And management has even gone further, saying it expects supply and demand for both DRAM and NAND to remain tight beyond calendar 2026.
There's also a structural argument. As AI models grow larger and lean more heavily on memory, the demand for Micron's chips may prove more durable than in past cycles.
"In the AI era, memory has become a strategic asset for our customers," said Micron CEO Sanjay Mehrotra when the company reported in March, pointing to the same dynamic that has reshaped the business.
The bear case is the one that has repeatedly plagued memory stocks: cyclicality. Micron has lived through painful downturns before -- most recently in 2023, when oversupply cratered prices and the company posted losses. And rivals Samsung and SK Hynix are notably racing to expand their own HBM output, and Micron itself is projecting more than $25 billion in capital spending this fiscal year. Should that supply arrive faster than AI demand can absorb it, the same pricing leverage now lifting margins could just as easily work in reverse.
So, what should investors make of all this heading into June 24?
With shares trading at a trailing price-to-earnings ratio in the mid-40s after their enormous run, a lot of good news is already baked in. I think the smartest approach is to keep your eyes on that gross margin line rather than the headline revenue number. It may be the best signal of whether Micron's pricing power -- and the thesis behind the stock's remarkable climb -- is still intact.
Micron guided Q3 revenue to $33.5 billion and 81% gross margins while customers receive only 50%-66% of demand. The first five-year Strategic Customer Agreement signals improving earnings visibility and reinforces memory's role as a critical AI infrastructure. Q2 generated $11.9 billion in operating cash flow, $6.9 billion in free cash flow, and a record $6.5 billion in net cash position.
A few years ago, a Wall Street analyst dubbed a group of megacap tech stocks that have led the market to new heights over the past five years the "Magnificent Seven" -- and the name stuck. Each is among the 10 largest companies in the world, and all can still make for solid investments. Other than Nvidia, most of them top out at about a 30% growth rate, which is impressive, but wouldn't be considered "hypergrowth." If you're looking for stocks that are doubling or even tripling their revenue year over year, you'll have to look beyond the Magnificent Seven.
Three hypergrowth stocks that look like strong picks right now are Micron (MU 1.02%), Sandisk (SNDK +5.24%), and Nebius (NBIS +4.63%). They're all cashing in on the massive artificial intelligence (AI) build-out, and are on course to deliver even more growth in the coming years.
Image source: Getty Images.
Micron Micron is a memory-chip maker that specializes in NAND and DRAM memory. Each of these distinct types is utilized in different varieties of computing products, with NAND memory largely going into solid-state drives (SSDs) and DRAM incorporated into computing units for fast memory access. Both types of memory are in short supply due to unprecedented demand from the AI infrastructure build-out, so the price of memory chips is skyrocketing. That is leading to huge revenue and earnings growth for Micron, which in turn has delivered impressive gains for investors.
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Two quarters ago, Micron's revenue totaled $13.6 billion. Last quarter, that figure hit $23.9 billion. For its recently completed fiscal third quarter, management was guiding for $33.5 billion. That's an unreal growth trajectory, and if Micron continues along it, it will be a great investment to hold.
While Micron and its peers are building more production capacity, the memory chip shortage isn't expected to be resolved anytime soon, so there's room for its revenues to continue growing. Wall Street analysts support that view: Their consensus expectation is for 197% growth in fiscal 2026, which ends in August, and 63% growth in fiscal 2027. Despite the monster run-up Micron stock has already experienced, it could have room to climb further.
Sandisk Sandisk is also a memory-chip maker, but it focuses only on NAND memory, which is utilized in SSDs. SSDs are used heavily in data centers for long-term data storage, and like Micron, Sandisk cannot make enough to satisfy the enormous demand coming from the AI realm.
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If you thought Micron's growth was impressive, you had better buckle up for Sandisk's. Although it's smaller than Micron, its revenue rose 251% year over year to $5.95 billion during its most recent quarter. Wall Street is similarly bullish on Sandisk's future, with 167% revenue growth expected for its fiscal 2026 (which ends this month) and 122% growth forecast in fiscal 2027.
With all that growth on the horizon, I have no doubt that Sandisk can continue being a top AI stock to own.
Nebius Nebius is one of the companies that's causing the memory chip shortage. It's a neocloud company, which means it builds data centers focused on producing AI-first cloud computing services. Considering the current tech environment, there are few better businesses to be in.
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In Q1 alone, Nebius' revenue rose by 684% year over year. However, it's not done there. Nebius has ambitious expansion plans and is doing everything it can to capture market share while there is huge demand. For the rest of 2026, Wall Street expects 551% growth, and in 2027, analysts project 224% growth. Essentially, Nebius' revenue is expected to rise by 20x from the end of 2025 to 2027. That's about as rapid a growth rate for a company as I've seen, and investors can still purchase the stock now without fearing that all of its future business growth is already baked into the stock price.
Order flow analytics analyze real-time buying and selling trends by examining the volume, timing, and order size across both retail and institutional traders. These insights offer a more detailed understanding of price behavior and market sentiment for a stock, allowing the trader or institution to make the most informed decision possible.
MU Performance
At the time of the Power Inflow, MU was priced at $919.99. Following the signal:
• Intraday High As Of 2:00PM EST: $950.49 (+3.32%)
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.
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Micron Technology MU shares moved higher on Thursday as investors returned to semiconductor stocks and analysts grew increasingly optimistic about the outlook for memory-chip demand driven by artificial intelligence.
The stock gained more than 10% during the session, rebounding after a sharp pullback that had seen shares fall roughly 12% over the previous five trading days.
Despite the recent correction, Micron remains one of the strongest-performing semiconductor stocks of the year, with shares up more than 212% in 2026.
The recovery came even as rival memory-chip producer SK Hynix outlined plans to significantly expand wafer production over the coming decade.
Investors appeared largely unconcerned by the announcement, given the long timeline for the planned capacity increase and the continued strength of AI-related demand.
Wall Street analysts argue that the recent decline in memory stocks does not signal the end of the industry's current growth cycle.
Morgan Stanley analyst Shawn Kim said dynamic random-access memory (DRAM) remains a critical bottleneck in the artificial intelligence buildout, positioning Micron, SK Hynix and Samsung Electronics to continue benefiting from strong demand.
"The cycle is still accelerating, earnings revisions remain robust and more sustainable than most believe," Kim said in a Wednesday note.
The analyst described the recent pullback in memory stocks as a necessary reset following substantial gains earlier in the year.
A correction among memory stocks that have had strong run-ups so far this year "was inevitable and ultimately healthy if this memory bull market is going to extend" through the end of the year, he said.
Kim added that growing demand from agentic AI applications could keep the current cycle running longer than previous memory upcycles.
He also pointed to long-term supply agreements between chipmakers and customers as a factor that could support higher valuation multiples across the sector.
Wolfe Research analyst Chris Caso expressed a similar view, arguing that long-term customer agreements could support "better multiples" because future supply expansions are increasingly tied to actual demand forecasts.
Several brokerages responded to the improving outlook by sharply increasing their price targets for Micron.
Wolfe Research raised its target to $1,250 from $550 while maintaining an Outperform rating.
The firm cited stronger-than-expected memory pricing and increased demand for high-bandwidth memory (HBM), a key component used in advanced AI systems.
Wolfe increased its forecasts after estimating approximately 45% growth in memory pricing during Micron's fiscal third quarter.
The firm expects favorable pricing trends to continue through calendar year 2026.
Daiwa also raised its price target on Micron, increasing its forecast to $1,600 from $700 while maintaining a Buy rating.
Despite the stock's strong performance this year, Micron continues to trade at a relatively modest valuation.
According to Dow Jones Market Data, the company trades at roughly 9.4 times forward earnings estimates, placing it among the cheapest stocks in the S&P 500 on that basis.
Supply constraints remain a key themeIndustry participants continue to point to supply shortages as a major driver of higher memory prices.
Memory prices have nearly doubled since February, while lead times have expanded as demand outpaces available supply.
IDC expects those supply constraints to persist for several more years.
"We’re not seeing any relief to the memory shortage situation before the end of 2027, which means prices will continue to rise and PC manufacturers will struggle to maintain full product portfolios for the foreseeable future," said Jean Philippe Bouchard, Vice President of Devices and Consumers at IDC.
Micron is also expanding its manufacturing footprint.
The company announced that it has selected Bechtel for its semiconductor project in New York, which is expected to support approximately 50,000 jobs, including more than 4,500 construction positions.
As AI-related demand continues to reshape the semiconductor industry, investors are increasingly betting that memory-chip suppliers such as Micron will remain among the sector's primary beneficiaries.
"Micron (MU) is going to have more free cash flow in 2026 than all of its prior years combined," says Zed Francis, pointing to it as a leading example to the fundamentals supporting it and other AI memory chipmakers. He outlines the "decent runway" he sees for these companies.
After two days of dispiriting declines, Micron (MU 1.02%) stock bounced back on Thursday, closing the day up 11.7% and returning its share price to where it was one week ago -- before the epic sell-off in semiconductor chip stocks.
Wolfe Research helped make that happen.
Image source: Micron.
Why Wolfe still loves Micron stock Despite investor worries about the health of the market for artificial intelligence chips, and for the high-bandwidth memory that helps AI systems answer questions, Wolfe clambered out on a limb today to raise its price target for Micron -- to $1,250 per share.
What has Wolfe convinced Micron shares -- up 667% already over the past year -- can gain another 26% over the next 12 months?
Prices for DRAM and NAND keep rising, argues analyst Chris Caso. By the time 2026 is over, Caso predicts DRAM prices could be 200% higher than at the end of 2025, and NAND memory prices could soar 216%. Price inflation will continue into 2017, rising another 17% for both kinds of computer memory.
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What's next for Micron in 2027? Demand for computer memory for AI data centers remains insatiable, and with little increase in supply to keep prices in check in the near term, the analyst believes Micron could rake in as much as $226.5 billion in sales next year, and earn $135 per share in profit.
Past 2027, things become less clear, with the potential for the supply and-demand gap to start closing toward the end of that year. Should Micron and its peers remain disciplined about expanding production, however, "higher pricing [can] persist for longer" than that, "potentially into CY2028."
Long story short: Boom times for Micron could last through 2028, or even 2029 -- and there's still plenty of time to buy this growth stock.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
The S&P 500 (^GSPC +0.50%) rose 1.75% to 7,394.30, the Nasdaq Composite (^IXIC +0.31%) jumped 2.54% to 25,809.66, and the Dow Jones Industrial Average (^DJI +0.70%) climbed 1.86% to 50,848.75 as a de-escalation of U.S.-Iran tensions lead a broad rebound.
Market moversMemory stocks surged today as Micron Technology bounced almost 12% to erase this week’s losses and Sandisk gained 14%. An analyst upgrade boosted Intel by 10%. Nvidia was also in the green, as semiconductors spearheaded the tech recovery.
In what’s becoming a common occurrence for AI hyperscalers, Oracle tumbled despite an earnings beat as investors digested its guidance and spending plans. Lam Research increased on renewed AI‑hardware demand optimism.
What this means for investorsStocks recovered today as renewed hopes for a U.S.-Iran peace deal ended a two-day selloff. Even hotter-than-expected wholesale inflation data didn’t dampen investor enthusiasm. May’s Producer Price Index rose 1.1% in May, taking the annual rate to 6.5%.
President Trump said he’d canceled tonight’s planned strikes on Iran and that negotiations were progressing. WTI crude oil fell back below $90 a barrel, and U.S. Treasury yields dropped. The stock rebound is a good reminder of how quickly markets can change direction, and underscores the importance of staying invested.
What promises to be a record-breaking IPO from SpaceX tomorrow dominated headlines. The company announced it would sell 555.6 million shares at $135 each, raising $75 billion and valuing it at a whopping $1.77 trillion. While individual investors are considering whether to buy SpaceX, there’s a broader liquidity concern on Wall Street — as investors might reduce exposure to other megacap techs to free up cash for the rocket-AI-communications stock.
Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Intel, Lam Research, Micron Technology, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
Micron Technology (MU +11.48%) and Intel (INTC +9.34%) are popular with investors right now because the artificial intelligence (AI) boom represents a significant growth opportunity for both companies. The stocks have added 228% and 192%, respectively, this year. Yet, certain Wall Street analysts think Micron and Intel are wildly overvalued.
William Kerwin at Morningstar has given Micron a target price of $500 per share. That implies 44% downside from its current share price of $898. Harlan Sur at J.P. Morgan has set a target price of $45 per share for Intel. That implies 60% downside from its current share price of $115. Those forecasts suggest investors should sell Micron and Intel. Here's why I agree.
Image source: Getty Images.
Micron Technology: 44% downside implied by Morningstar's target price Micron manufactures memory and data storage solutions built on DRAM and NAND flash technology. Its products are used in data centers, mobile devices, personal computers, and automotive systems. While Micron has benefited from a severe memory chip supply shortage tied to demand for artificial intelligence, it lacks a durable competitive advantage.
"We do not believe Micron has an economic moat," writes Kerwin at Morningstar, mentioning the capital-intensive nature of the memory chip industry and the company's mediocre profit margins. "We view DRAM and NAND as commodity-like products prone to market supply/demand dynamics and steady pricing erosion."
To understand why Micron lacks an economic moat, consider the company's most recent quarterly financial results. Revenue rose 196% to $23.8 billion and non-GAAP (adjusted) net income soared 682% to $12.20 per diluted share. Yet, Micron lost share in DRAM and NAND, while Samsung and SK Hynix gained market share.
While Micron's financial results were impressive, the strong numbers were primarily driven by price increases supported by an unprecedented supply shortage, not something unique to Micron. In fact, Samsung and SK Hynix have key advantages in greater production capacity and higher revenue, which means they have more capital to invest in research and development (R&D).
Wall Street expects the current memory chip cycle to peak in 2028, and for prices to drop sharply in 2029. In turn, the consensus estimate says Micron's adjusted earnings will grow at 13% annually through 2029. That makes the current valuation of 40 times earnings look way too expensive. Indeed, among 50 analysts, Micron has a median target price of $660 per share, implying 26% downside from its current share price of $898.
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Intel: 60% downside implied by J.P. Morgan's target price Intel's vertical integration was once a source of great strength. The company was seen as the pinnacle of semiconductor manufacturing technology because it controlled the entire pipeline, from chip design to fabrication. But Taiwan Semiconductor Manufacturing took the lead in manufacturing technology in 2017, and currently makes 95% of the most advanced chips.
Today, Intel is still the largest supplier of central processing units (CPUs). However, the company has lost substantial market share to AMD and Arm over the past decade, in both the data center server and client (personal devices) market segments, due to execution missteps and manufacturing delays.
Bulls will say Intel is on the precipice of a big turnaround. The company is pursuing a large opportunity in contract chipmaking (i.e., foundry services), and AI inference (which is much more CPU-intensive than AI training) is becoming much more common. Indeed, Intel says inference workloads surpassed training workloads last year.
However, whether Intel is actually turning its business around is debatable. The company has struggled to win major foundry customers, and its recent financial results have been uninspiring. In the first quarter, revenue increased just 7%, and the foundry segment lost $2.3 billion on $4.6 billion in sales.
Harlan Sur at J.P. Morgan Chase highlighted several problems in a recent note: "From a company fundamental perspective, the company is facing tough macro headwinds and a highly competitive compute environment exacerbated by lingering questions about its ability to execute. ... From a financial perspective, the stock should continue to be under pressure as the market continues to be concerned about the sustainability of dividend payments."
Wall Street estimates Intel's adjusted earnings will increase at 77% annually through 2027. While impressive, that forecast still makes the current valuation of 200 times earnings look very expensive. I think investors should avoid Intel, and most Wall Street analysts agree. The stock has a median target price of $96 per share, implying a 16% drop from the current share price of $115.
Analyst Forecasts Move HigherMicron received another boost from Wall Street after Wolfe Research reiterated its Outperform rating and raised its price forecast to $1,250 on Thursday. The firm cited stronger pricing expectations for both DRAM and NAND memory products.
Wolfe expects memory demand to outpace supply through at least 2027, with industry growth constrained by limited cleanroom capacity. The firm now projects fiscal 2027 revenue of $226.5 billion and earnings of $135 per share. It also expects high-bandwidth memory (HBM) pricing to increase as suppliers seek margins closer to traditional DRAM products.
The bullish call follows other recent forecast increases. On Wednesday, Goldman Sachs maintained its Neutral rating and lifted its price forecast to $900. Earlier this week, Wells Fargo reiterated its Overweight rating and raised its forecast to $1,220.
The stock currently carries a consensus Buy rating, with an average analyst price forecast of $927.29.
Earnings Remain the Next Major CatalystInvestors are now looking toward Micron’s earnings report, scheduled for June 24.
Analysts expect earnings of $19.46 per share, up sharply from $1.91 a year earlier. Revenue is projected to reach $34.07 billion, compared with $9.30 billion in the prior-year period.
Micron Technical Picture Remains BullishMicron continues to trade in a strong long-term uptrend. The stock sits 12.2% above its 20-day simple moving average of $882.85 and 162.5% above its 200-day moving average of $377.38.
The broader trend remains constructive, supported by a bullish moving-average structure. The 20-day average remains above the 50-day average, while the 50-day average stays above the 200-day average.
However, momentum has cooled. The MACD indicator remains below its signal line, suggesting upside momentum has weakened and the stock may continue consolidating after its recent rally.
The next key resistance level is near $1,089.50, close to Micron’s 52-week high zone.
MU Stock Price Activity: Micron Technology shares were trading down 0.97% at $986.23 during premarket trading on Friday, according to Benzinga Pro data.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Micron Technology, Inc. (MU) shares gain 758.3% in a year, up 9,645% since Big Money’s first buy in 1994.
MU makes memory and storage solutions for AI networks, mobile, and embedded systems used by corporate and individual customers globally. The company’s second-quarter fiscal 2026 report showed $23.9 billion in revenue (a 196% year-over-year gain), non-GAAP per-share earnings of $12.20 (up 682%), and fiscal third-quarter EPS guidance of $19.15.
No wonder MU shares are up 249% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Micron Flying High on Big Money Buys Institutional volumes reveal plenty. In the last year, MU has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in MU shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Micron.
Micron Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MU has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +80.3%.
Now it makes sense why the stock has been generating Big Money interest. MU has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Micron has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s had 19 Big Money outlier inflow signals in the last year. The blue bar below shows when MU was a top pick…Big Money keeps buying:
Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Micron Price Prediction The MU action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in MU at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
If you had the foresight to invest in Micron (MU 1.02%) and Sandisk (SNDK +5.26%) stock during this time last year, you look like a genius right now. Micron is up about 700%, while Sandisk is up more than 3,800%. Those are monster returns in a short time frame, and would thrill any investor.
But that doesn't matter anymore. What really matters is if these two can continue their run.
Image source: Getty Images.
Micron and Sandisk are thriving from a memory chip shortage The artificial intelligence (AI) build-out has stretched many supply chains thin. Demand for computing products has never been this high, and there isn't the capacity to fulfill the needs that the AI hyperscalers are creating. Those demands aren't likely to slow down, either. Alphabet told investors that they should expect "significantly" more in data center capital expenditures in 2027, and Nvidia informed investors that next year's hyperscaler spending could top $1 trillion, on the path to $3 trillion to $4 trillion in annual data center spending around the globe by 2030.
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Those are major growth projections, and any company involved in the AI build-out is set to experience major growth during the next few years, which bodes well for both Micron and Sandisk. These two companies both make memory chips, of which there are two primary varieties. Micron makes both NAND and DRAM, while Sandisk makes NAND. NAND memory has a higher storage capacity, but is slower than DRAM. In data center applications, it's primarily used in solid-state drives (SSDs) for long-term data storage. DRAM memory usually accompanies computing units like GPUs for quick access to information. Both of these types of memory chips are in high demand, and neither Sandisk nor Micron has the needed production capacity.
With low supply and high demand, the price of the commodity soars, which is why both Micron and Sandisk have seen unbelievable revenue and earnings growth during the past few quarters.
MU Revenue (Quarterly YoY Growth) data by YCharts
Wall Street analysts expect these incredible results to continue. For fiscal year 2027 (ending August 2027), Wall Street expects 63% revenue growth from Micron. Sandisk's projections are even higher, with its FY 2027 (ending June 2027) growth rates projected to come in at about 122%.
With long-term data center demand ahead and no chipmakers able to provide adequate supply, I'd expect memory chip prices to stay elevated for the next few years, making these stocks intriguing investments. But are they priced right?
Both Micron and Sandisk have room to run Despite both companies going on an unbelievable run during the past year, their stock valuations haven't gotten out of control because they were cheaply priced to begin with, and each has the growth to justify its current price tag.
MU PE Ratio (Forward 1y) data by YCharts
If you look at next year's earnings (forward one-year price-to-earnings ratio), each stock trades for about 9 times next year's earnings. Compared to each stock's forward P/E now, that could mean each stock can double as 2027's results are realized. Although that's not the monster returns that each stock put up during the past year, it's still a great return for just one year of buying and holding a stock.
However, these two stocks aren't set-it-and-forget-it investments. Investors will need to keep an eye on memory chip supply and demand, because if supply catches up to demand, prices could fall sharply, and these stocks could get slammed. If you're diligent, there's still a ton of money to be made here. But these two aren't for everyone due to their monitoring requirements.
Micron Technology MU drew a higher price target from Wolfe Research after the firm lifted its assumptions for memory pricing, according to an analyst note.
Wolfe increased its target on Micron to $1,250 from $550 and kept an Outperform rating. The firm said its updated model reflects sharper price gains for DRAM and NAND in calendar 2026 and 2027.
Wolfe said demand appears likely to stay ahead of supply through at least 2027 and possibly into 2028. It also said cleanroom limits may curb bit shipment growth, while high-bandwidth memory pricing could keep rising as suppliers try to narrow margin gaps.
The call adds to a series of upbeat Wall Street revisions on Micron. Susquehanna, DA Davidson and Mizuho have also lifted their targets in recent days, while Micron shares climbed about 11% on Thursday.
AI’s evolution faces several so-called bottlenecks, including constrained supply for memory semiconductors amid booming demand for those chips. For those who want to focus on domestic names with clear ties to that theme, Micron (MU) usually take the cake. However, there’s an international opportunity with the memory chip trade; two South Korean companies — Samsung and SK Hynix — are among the memory semiconductor leaders, along with Micron.
Shares of both South Korean firms are surging on the back of the memory bottleneck. That goes a long way toward explaining why the Direxion Daily South Korea Bull 3X Shares (KORU) is one of this year’s hottest leveraged ETFs. KORU attempts to deliver 300% of the daily returns of the MSCI Korea 25/50 Index, a gauge in which Samsung and SK Hynix are by far the two largest holdings.
To be sure, like any other leveraged ETF, KORU can give and take away in short order. Entering the Thursday, June 11 trading session, the ETF was down more than 24% over the prior week. But as of late June 11, the ETF had made up those losses, and then some. Clearly, it is very much a short-term instrument, not a buy-and-hold investment. Fortunately, for risk-tolerant traders, the memory chip trade has ample tailwinds, indicating plenty of potential opportunities in the back half of this year to make short-term use of the fund.
KORU Is a Demand Story Fundamentals are important in long-term investing, but they are also pertinent to assessing the short-term opportunity set for KORU. Fortunately, there’s good news on that front.
“The pressure is coming from AI infrastructure buildouts. We see servers accounting for 59 percent of DRAM demand by 2028, up from 37 percent in 2023,” noted Shawn Kim, head of Morgan Stanley’s Europe and Asia technology team. “We also see enterprise solid-state drives reaching 65 percent of NAND demand, up from 18 percent. And simply put, data centers are taking a much bigger share of the memory pie.”
Bolstering the case for stocks like Micron, Samsung and SK Hynix and thus KORU, the aforementioned crimped memory supply situation cannot be ameliorated overnight.
“This demand is running into a supply chain that cannot respond quickly. New memory capacity takes years to build, qualify and ramp up. Supply relief is a process, not a switch,” added Kim.
Bottom line: For traders that can handle the volatility, KORU merits a place on their watch lists as the memory trade gains momentum.
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
Micron Technology (NASDAQ:MU | MU Price Prediction) is the chip stock dominating every feed after its memory business rode the AI cycle to a $1.12 trillion market cap and a 760.37% one-year run.
But here’s what you should actually be watching.
The Crowded Trade at the Top of the Cycle Memory margins do not stay at 74% forever. Micron just reported fiscal Q2 2026 revenue of $23.86 billion, up 196.3% YoY, with GAAP gross margin of 74.4% against a multi-year base where memory margins regularly compress below 30% in downcycles. Capex hit $15.86 billion in fiscal 2025 and is still climbing. CEO Sanjay Mehrotra himself flagged “dependence on sustained AI demand trajectory” as a key risk.
That is a textbook peak-cycle setup wearing AI clothes. The stock is up 249.09% year to date. Reddit’s wallstreetbets has been flooded with posts like “+6,476.76% gain on MU LEAPS, should I sell?” When LEAPS screenshots dominate the feed, the crowd has already arrived. You are the exit liquidity. Prediction markets confirm the fatigue: traders price only a 43% probability of MU closing June above $1,000.
The Redirect: A Record-Breaking Cloud Powerhouse on Sale Oracle (NYSE:ORCL) just delivered a record fiscal Q4 on June 10, 2026, then sold off 22.1% in a week to $184.10. That is the contrarian’s window.
Three reasons retirement-focused investors should pay attention while the herd is distracted:
1. Backlog visibility memory will never match. Oracle’s Remaining Performance Obligations hit $638 billion in Q4, up 363% YoY, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Memory ships and reprices quarterly. Oracle has years of revenue already under contract. Safra Catz called the trajectory “an astonishing quarter” back in September, when RPO was a mere $455 billion.
2. Structural shift, recurring revenue. Cloud is now 52% of total revenue versus 43% a year ago. Cloud Infrastructure revenue grew 93% YoY to $5.787 billion. Multicloud AI Database grew 404% in Q4. Oracle monetizes the same AI buildout lifting Micron, just through subscriptions instead of spot pricing.
3. Guidance raised into the pullback. FY27 non-GAAP EPS guidance was raised to $8.05, representing 18% growth, with FY27 revenue confirmed at $90 billion. Q1 FY27 cloud revenue growth is guided at 58%-64%. The stock has been re-rated lower while forward estimates moved higher. That is a classic contrarian entry.
The Honest Risks, and Why They Don’t Break the Thesis Free cash flow ran to negative $23.686 billion for FY26 on $55.663 billion of capex. Oracle plans to raise roughly $40 billion in FY27 through debt and equity. That is the cost of building 211+ live and planned cloud regions and 72 Multicloud datacenters embedded inside Amazon, Google, and Microsoft. Customers are funding much of it directly. The capacity, per co-CEO Clay Magouyrk, is “all already contracted for at a very profitable rate.”
And while the infrastructure compounds, Oracle declared a $0.50 quarterly dividend on June 10, payable July 24. Income, plus a re-rating opportunity. Exactly what a retirement portfolio is built around.
Put Oracle on the watchlist while the headlines chase Micron at $995.87.
On June 3, Micron Technologies (MU 1.02%) hit an all-time high of $1,079. The move capped off months of explosive gains as investors started pivoting away from chipmakers like Nvidia in favor of the memory hardware producers poised to benefit from the changing dynamics of artificial intelligence (AI) infrastructure demand.
While graphics processing units (GPUs) are still important, data center clients are recognizing they need huge amounts of storage to keep up with the requirements of increasingly complex AI models. Let's dig deeper to see how much longer this trend might last and decide if Micron stock can maintain its explosive rally or will eventually slow down.
Image source: Getty Images.
The memory shortage is still in full swing As of June 2026, the global memory hardware shortage remains in effect, as data center clients continue to buy high-bandwidth memory (HBM) and advanced DRAM practically as fast as it can be produced. Suppliers like Micron are shifting production capacity toward these parts of the market, leading to shortages of less advanced hardware.
The memory crunch is affecting many parts of the economy. This month, groups representing automakers and retailers sent a letter to the U.S. Treasury and Commerce departments warning of "significant and sustained near-term price increases" for a variety of consumer goods. But while they see the issue as a challenge for their supply chains, it has become a historic windfall for Micron and other industry leaders.
Second-quarter revenue soared a blistering 196% year over year to $23.86 billion, driven by strength across Micron's operating segments. Meanwhile, gross margins rose from 36.8% to 74.7% -- a level typically seen in software companies that don't even sell physical products. The combination of soaring revenue and margins drove the company's profits to explode 770% to $13.78 billion.
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Instead of returning the windfall to investors in dividends or buybacks, Micron plans to invest in itself through a $200 billion build-out to expand its manufacturing capacity in the U.S.
Is a macroeconomic time bomb on the horizon? This month, the Consumer Price Index (CPI) inflation reading rose to 4.2%, which represents the highest level in three years. This situation is linked with the ongoing war in Iran, which has spiked energy costs. But the memory shortage could soon start helping push consumer prices even higher, leading to another inflation crisis for an economy that never fully recovered from the first one after the COVID-19 pandemic.
While Micron is in a good position right now, the macroeconomic situation is becoming so strained that it might not escape unscathed. The first challenge will be interest rates, which may have to rise to keep inflation under control. Higher rates make capital and borrowing more expensive, which reduces the amount of money investors are willing to bet on growth stocks. These fears are likely behind the recent dip in Micron and other tech stocks following the latest jobs and inflation data.
The second big risk is demand destruction, which occurs when prices get so high that consumers start delaying purchases or seeking substitutes. While it may take a long time for this to affect Micron's well-capitalized data center clients, it could happen much sooner in other memory markets, like smartphones, personal computers, and cars, especially as regular people are already being squeezed by inflation.
It's time to take profits Investors who bought Micron stock 12 months ago have now made a return of almost 700%. And while continued growth is possible amid the ongoing chip shortage, the potential risks are starting to outweigh the rewards as concerns about inflation and rising rates begin to mount. Investors should consider taking profits and sitting on the sidelines until there is more clarity on the worsening macroeconomic situation.
Key Takeaways Micron expects fiscal Q3 2026 revenues of $33.5B and gross margin near 81%. NVDA posted record fiscal Q1 2027 revenues of $81.6B and projects $91B for Q2. MU trades at 16.65 forward earnings versus NVDA's higher multiple of 22.97. Riding the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology (MU - Free Report) outpaced Jensen Huang-led NVIDIA Corporation (NVDA - Free Report) over the past year, rising 761.5% compared to NVIDIA’s 44.3%. Let us thus see how both companies performed and whether Micron holds an investment edge over NVIDIA –
Image Source: Zacks Investment Research
The Bullish Case for MU Stock Micron reported revenues of $23.86 billion in the fiscal second quarter of 2026 and expects revenues to improve further to $33.5 billion in the fiscal third quarter, according to investors.micron.com. As hyperscalers increase their spending on AI infrastructure, Micron’s advanced high-bandwidth memory (“HBM”) chips are witnessing high demand, supporting revenue growth.
The present supply-demand imbalance in HBM chips gives Micron strong pricing power and underpins a strong long-term growth outlook. Nonetheless, the HBM chips are in demand due to their capability to manage complex workloads while delivering improved power efficiency.
Also, constrained supply in NAND flash chips is expected to continue through the middle of next year, which could further boost margins. Micron expects a solid gross margin of around 81% for the fiscal third quarter of 2026, showcasing strong financial momentum.
The Bullish Case for NVDA Stock NVIDIA’s latest strong Data Center performance demonstrated its position as a leader in hyperscale AI infrastructure investment worldwide. In the fiscal first quarter of 2027, NVIDIA’s Data Center segment generated a record $75.2 billion in revenues, up 92% year over year and 21% sequentially, according to nvidia.news.nvidia.com.
NVIDIA reported revenues of $81.6 billion in the fiscal first quarter of 2027, a new record, up 85% from a year ago and 20% sequentially. Despite its massive size, NVIDIA’s revenues continue to grow, driven by strong demand for its cutting-edge AI chips, networking solutions, and data center infrastructure that support large-scale AI training and inference workloads. NVIDIA projects fiscal second-quarter of 2027 revenues of $91 billion, plus or minus 2%.
Additionally, NVIDIA continues to deliver strong margins, reflecting its pricing power in graphics processing units (GPUs) and AI accelerators, while maintaining sustained demand for its products across the AI and data center markets. For the fiscal first quarter of 2027, NVIDIA’s non-GAAP gross margin was 75%, and is expected to remain near 75% for the fiscal second quarter of 2027, a tell-tale sign that the company is capable of maintaining strong profitability.
Micron Has the Edge: Why It’s a Better AI Buy Than NVIDIA Now Strong AI-infrastructure demand is currently driving the bullish outlook for both Micron and NVIDIA. However, Micron appears to offer a more attractive valuation than NVIDIA at the current levels.
Per the price/earnings ratio, MU trades at 16.65 forward earnings compared with NVDA’s forward earnings multiple of 22.97. Since NVIDIA trades at a premium valuation, the company needs to deliver strong growth to justify further upside. On the other hand, Micron can outperform through steady and sustainable earnings growth.
Image Source: Zacks Investment Research
Additionally, Micron is no longer viewed as a traditional cyclical memory company; it has elevated itself to become a key supplier in the AI infrastructure ecosystem. Micron has sold a significant amount of its HBM capacity through 2026 amid strong AI-driven demand. The HBM supply constraint has given the company a strong pricing power, boosting profit margins, improving revenue visibility and creating further upside potential for the stock.
In contrast, much of NVIDIA’s strong quarterly performance already appears reflected in its share price, and the ongoing China-related export curbs could create pressure on future growth. Therefore, currently Micron looks like the more compelling investment opportunity.
While Micron has a Zacks Rank #1 (Strong Buy), NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology MU shares edged lower on Friday as investors weighed valuation concerns and rising expectations ahead of the memory-chip maker’s upcoming earnings report.
However, demand for artificial intelligence-related memory products continued to support the company’s long-term growth outlook.
Micron stock fell 1.43% on Friday after Goldman Sachs raised its price target on the company but maintained a Neutral rating, highlighting the increasingly bullish sentiment surrounding the stock ahead of its June 24 earnings release.
The memory-chip manufacturer has been one of the key beneficiaries of the AI infrastructure boom, particularly through demand for high-bandwidth memory (HBM) products used in advanced AI systems.
Despite Friday’s decline, Micron shares have gained roughly 15% over the past five trading sessions, recovering from recent volatility across the semiconductor sector.
Goldman Sachs analyst James Schneider increased his price target on Micron to $900 from $400 while maintaining a Neutral rating on the stock.
The analyst cited elevated investor expectations as a reason for caution heading into the company’s earnings report later this month.
"We believe investor positioning remains very bullish given the dramatic share price run-up and optimism around the potential impact of long-term customer agreements," Schneider wrote.
Micron continues to trade at a relatively low valuation compared with broader technology stocks.
According to FactSet data cited in the report, Micron traded at approximately 10.2 times forward earnings as of Thursday’s close, compared with 24.8 times for the Nasdaq Composite.
Goldman Sachs based its new price target on an earnings multiple of 18 times Schneider’s normalized earnings-per-share estimate of $50.
The analyst expects Micron’s earnings, which have been boosted by strong HBM demand, to peak in fiscal 2027 at $138.86 per share.
"We expect the stock debate to continue to center primarily on long-term customer agreements and the sustainability of DRAM pricing strength; any future commentary regarding HBM progress and share targets will be in focus," Schneider wrote.
Earnings expectations remain highInvestor attention is now firmly focused on Micron’s June 24 earnings report, which is expected to provide further insight into demand trends across the AI memory market.
Analysts currently forecast earnings of $19.46 per share, a significant increase from $1.91 per share reported during the same period a year ago.
Revenue is projected to reach $34.07 billion, compared with $9.30 billion in the prior-year quarter.
The expected growth reflects continued strength in demand for memory chips used in AI servers and data-center infrastructure, where Micron has become an increasingly important supplier.
At the same time, investors are closely monitoring pricing trends in the DRAM market, which has historically experienced significant cyclical swings.
The stock continues to trade well above key moving averages, sitting approximately 12.2% above its 20-day simple moving average and 162.5% above its 200-day moving average.
The broader moving-average structure also remains bullish, with the 20-day average above the 50-day average and the 50-day average above the 200-day average.
However, some momentum indicators suggest the recent rally may be cooling.
The MACD indicator remains below its signal line, indicating that upside momentum has weakened and that the stock could continue consolidating following its strong gains.
The next major resistance level is near $1,089.50, close to Micron’s 52-week high, as investors await the company’s earnings results and updates on AI-related memory demand.
Listen to the audio version of this article (generated by AI).
Everyone wants to find the next Nvidia – legendary investor Louis Navellier thinks a better question might be: Can you hold it once you do?
In today’s Friday Digest takeover, Louis explains why today’s AI boom reminds him of the internet buildout of the late 1990s. Not because he sees a bubble, but because he sees the same mix of massive infrastructure spending, rapid growth, and investors getting shaken out by volatility.
He highlights several companies benefiting from the AI buildout beyond the usual headline names and argues that the opportunity remains much broader than most investors realize.
Most importantly, Louis says the biggest challenge isn’t identifying the trend – it’s staying invested when the market gets choppy.
If you missed it, he expanded on these ideas in a presentation with TradeSmith CEO Keith Kaplan this past Wednesday, where the two discussed a new AI-powered approach to navigating volatility. You can watch the replay right here.
Bottom line: If Louis is right, the investors who benefit most from the AI boom won’t be the ones who find the trend first – but the ones who stick with it.
I’ll let Louis take it from here.
Have a good evening,
Jeff Remsburg
“How much would it cost me to buy you?”
That’s how Cisco Systems Inc. (CSCO) CEO John Chambers greeted the founder of telecom startup Cerent Corp. in 1999.
Not his company. You.
Cerent had only about $10 million in annual sales, but Cisco paid roughly $6.9 billion in stock because Chambers believed the technology and that founder were critical to the internet buildout.
At the time, Chambers had a simple solution whenever he found a bottleneck:
Buy it.
By the late 1990s, the internet was growing so fast that Cisco couldn’t build products quickly enough to keep up. So it started buying competitors, technologies, and choke points throughout Silicon Valley.
That strategy helped make Cisco the most valuable company in the world for a brief moment in March 2000.
Most people remember what happened next. I remember what came before.
The internet buildout was real. Networks got built, servers got installed, and infrastructure spending exploded. Investors who understood that trend made fortunes.
I’ve been thinking about Cisco lately because we’re watching the same movie again.
The AI buildout is real. First-quarter S&P 500 earnings grew nearly 29% from a year ago — more than double what analysts expected. Analysts keep revising estimates higher. The spending behind this is staggering and it’s accelerating.
That’s what I want to talk about today.
In this piece, I’ll show you four stocks prospering from the AI buildout beyond Nvidia and Micron…
Why I believe this infrastructure boom is still early…
And why the hardest part of the AI trade isn’t finding the right companies. It’s staying with them.
Everybody Wants the Next Nvidia I’ve been investing through major technology shifts for nearly five decades. I was using computers to analyze stocks in the 1970s, long before it became common on Wall Street. Over the years, my quantitative systems helped identify winning stocks such as Apple Inc. (AAPL) and Nike Inc. (NKE) — and Nvidia Corp. (NVDA) and Microsoft Corp. (MSFT) — long before they became household names.
In the late 1990s, everybody wanted the next internet stock. Today, everybody wants the next AI stock.
That’s understandable. Nvidia has become one of the most successful investments in modern market history.
But investors often become so focused on one company that they miss the broader trend unfolding around it.
Artificial intelligence is no longer just a Nvidia story. There are a lot more AI-related stocks prospering now. Memory companies, networking companies, power-generation companies (we used to call those “utilities”)… all are benefiting.
Why? Because AI requires an enormous amount of infrastructure.
The average investor sees ChatGPT or Claude on their browser and thinks software. I see hundreds of billions of dollars flowing into an entirely new computing architecture.
To appreciate the scale, one proposed AI data-center project in Utah would cover nearly three times the area of Manhattan. Similar projects are being planned across the country. These facilities will require thousands upon thousands of chips, servers, and networking systems.
That’s why companies like Micron Technology Inc. (MU) have become so important.
Most investors still think of it as a cyclical memory-chip company from the middle of the country. But on May 26, Micron became Boise, Idaho’s first trillion-dollar company.
Wall Street sees something different. Sales are expected to grow more than 250%. Earnings are expected to rise more than 900%.
Those aren’t normal numbers. They’re what happens when a major technological shift is underway and demand overwhelms supply. Micron has reportedly sold out much of its high-bandwidth memory production under long-term contracts, and analysts expect supply shortages to persist for years.
It’s also why I want you to pay attention to companies like Dell Technologies Inc. (DELL), Hewlett Packard Enterprise Co. (HPE), Ciena Corp. (CIEN)… and, yes, Cisco. These aren’t the first names investors think about when they hear “AI,” but they’re increasingly prospering from the buildout.
The opportunity is getting bigger. Not smaller. When a major investment theme spreads beyond a handful of stocks and starts lifting entire industries, it usually means the trend is becoming more durable and more profitable — not less.
That’s what we’re seeing right now.
The Real Risk Isn’t What Most Investors Think I focus on a combination of fundamental and quantitative measures — sales growth, earnings growth, analyst revisions, institutional buying pressure. That’s how my Stock Grader system has identified winning stocks for well over 40 years.
And right now, those indicators continue to point in the right direction. I think many of the best AI and data-center stocks still have substantial upside ahead of them before the year is over.
But being bullish doesn’t mean being complacent.
The spending behind this boom is staggering. Microsoft, Amazon.com Inc. (AMZN), Alphabet Inc. (GOOG), and Meta Platforms Inc. (META) are expected to spend roughly $700 billion on AI infrastructure this year alone. That’s data centers, networking equipment, chips, power generation, and everything needed to support the next generation of AI applications.
Those aren’t startup projections. They’re some of the largest and most successful companies in the world committing enormous capital because they believe AI will reshape the global economy.
The biggest risk facing investors right now isn’t that AI suddenly becomes less popular. It’s not that companies stop spending on data centers. And it’s not that earnings suddenly collapse.
The bigger risk is that investors get shaken out of fundamentally superior stocks during perfectly normal periods of volatility.
I’ve seen it happen throughout my career. A stock pulls back. The headlines get scary. Investors become nervous. They sell. Six months later, the stock is substantially higher.
The late 1990s were full of those moments. Even the biggest winners experienced sharp pullbacks from time to time. Investors who stayed focused on the long-term trend were rewarded. Investors who reacted emotionally often weren’t.
I think we’re approaching a similar period now. The market remains healthy, but summer can get bumpy. Trading volume thins out. Volatility increases. Short sellers become more aggressive.
That’s normal.
And it’s one reason I’ve been spending so much time with Keith Kaplan and the team at TradeSmith. Over the past year, Keith and I have been exploring a new AI-enhanced approach that combines my Stock Grader system with TradeSmith’s pattern-recognition technology. What interested me wasn’t the technology itself. It was the results.
More importantly, it showed how investors can stay with opportunities like Dell, HPE, Ciena, and Cisco when volatility inevitably shows up. Because the hard part isn’t finding promising AI stocks anymore. The trend is staring us in the face. The hard part is staying invested when the headlines turn negative and investors start questioning the same companies they loved a month earlier.
That’s exactly what Keith and I discussed earlier this week.
In our free, special presentation, we show investors how we’re using AI to become more tactical and amplify the gains you can make with the stocks I recommend.
You can watch a replay of the event right here.
Whether it’s Micron, Dell, HPE, Ciena, Cisco — or another company prospering from the AI buildout — the opportunity is still much bigger than most investors realize.
