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Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner
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Key Takeaways
Micron hit an all-time high as AI-focused HBM demand surged with hyperscaler AI spending.
MU said it can meet only half of near-term HBM demand, supporting elevated pricing power.
Micron sees HBM market growing from $35B in 2025 to nearly $100B by 2028 at 40% CAGR.
NVIDIA Corporation’s (NVDA - Free Report) shares have climbed over 60% in the past year as demand for its cutting-edge graphics processing units (GPUs) soared well beyond supply, thanks to mega-cap tech companies significantly increasing spending in artificial intelligence (AI) data centers.
The incessant demand for NVIDIA’s data center chips drove robust revenue and earnings growth, supporting a positive outlook. NVIDIA’s dominance across both software and hardware ecosystems has given the company a competitive edge and reinforced confidence in the business model under CEO Jensen Huang.
However, Micron Technology (MU - Free Report) has recently emerged as a strong contender in the AI space, rivaling NVIDIA as its shares soared more than 600% over the past year. Let us thus take a closer look at how Micron fared, and why it still has the potential to climb further and stand out as a top performer this year.
Micron’s AI Memory Boom Is Far From Over
Micron’s shares hit an all-time high last week as demand for its AI-focused memory solutions remained strong. Micron’s high-bandwidth memory (HBM) chips saw an increase in demand as hyperscalers scaled up their investments in AI infrastructures. The HBM chips are in high demand due to their ability to process intense workloads more efficiently while consuming less power.
The HBM chips are currently in short supply, and this demand-supply imbalance could support Micron’s pricing power and drive long-term growth. Micron confirmed that it can only fulfill half of the near-term HBM market demand, allowing it to maintain prices at elevated levels for some time, boost revenues and provide support to future stock gains.
According to Micron, HBM’s total addressable market is expected to witness a CAGR of 40% from around $35 billion in 2025 to almost $100 billion by 2028. At the same time, a tight supply situation is expected to support elevated pricing for Micron’s NAND flash chips through mid-next year, which supports margin expansion.
Micron thus expects fiscal third-quarter 2026 gross margin to be solid at 81%, indicating strong financial momentum, according to investors.micron.com. Thanks to the high demand for HBM chips, in particular, Micron expects revenues to increase to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026.
Micron’s Best Days May Still Be Ahead
Beyond reaching record highs, Micron’s shares have further room to run, banking on strong demand for its AI memory products amid ongoing supply constraints, with the company expecting an improved quarterly performance.
From a technical standpoint, Micron’s shares continue to trade well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, reinforcing a bullish trend.
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Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner
Key Takeaways
NVIDIA Corporation’s (NVDA - Free Report) shares have climbed over 60% in the past year as demand for its cutting-edge graphics processing units (GPUs) soared well beyond supply, thanks to mega-cap tech companies significantly increasing spending in artificial intelligence (AI) data centers.
The incessant demand for NVIDIA’s data center chips drove robust revenue and earnings growth, supporting a positive outlook. NVIDIA’s dominance across both software and hardware ecosystems has given the company a competitive edge and reinforced confidence in the business model under CEO Jensen Huang.
However, Micron Technology (MU - Free Report) has recently emerged as a strong contender in the AI space, rivaling NVIDIA as its shares soared more than 600% over the past year. Let us thus take a closer look at how Micron fared, and why it still has the potential to climb further and stand out as a top performer this year.
Micron’s AI Memory Boom Is Far From Over
Micron’s shares hit an all-time high last week as demand for its AI-focused memory solutions remained strong. Micron’s high-bandwidth memory (HBM) chips saw an increase in demand as hyperscalers scaled up their investments in AI infrastructures. The HBM chips are in high demand due to their ability to process intense workloads more efficiently while consuming less power.
The HBM chips are currently in short supply, and this demand-supply imbalance could support Micron’s pricing power and drive long-term growth. Micron confirmed that it can only fulfill half of the near-term HBM market demand, allowing it to maintain prices at elevated levels for some time, boost revenues and provide support to future stock gains.
According to Micron, HBM’s total addressable market is expected to witness a CAGR of 40% from around $35 billion in 2025 to almost $100 billion by 2028. At the same time, a tight supply situation is expected to support elevated pricing for Micron’s NAND flash chips through mid-next year, which supports margin expansion.
Micron thus expects fiscal third-quarter 2026 gross margin to be solid at 81%, indicating strong financial momentum, according to investors.micron.com. Thanks to the high demand for HBM chips, in particular, Micron expects revenues to increase to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026.
Micron’s Best Days May Still Be Ahead
Beyond reaching record highs, Micron’s shares have further room to run, banking on strong demand for its AI memory products amid ongoing supply constraints, with the company expecting an improved quarterly performance.
From a technical standpoint, Micron’s shares continue to trade well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, reinforcing a bullish trend.
Technical Indicator & Overlays - Micron
Image Source: Zacks Investment Research
Micron currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.