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3 AI Infrastructure Stocks Up 500%+ With More Upside in 2H 2026
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Key Takeaways
MU, STX and WDC passed a momentum screen from a universe of more than 7,743 stocks.
Micron has a Momentum Score of A and expects 675.2% earnings growth this year.
WDC has a Momentum Score of A and projects 103.9% earnings growth this year.
For investors seeking outsized returns heading into the second half of the year, they should focus on high-momentum stocks, following Richard Driehaus’s renowned “buy high and sell higher” strategy that earned him a place on Barron’s All-Century Team.
Using the Driehaus momentum-investing framework, artificial intelligence (AI) infrastructure stocks such as Micron Technology, Inc. (MU - Free Report) , Seagate Technology Holdings plc (STX - Free Report) and Western Digital Corporation (WDC - Free Report) have emerged as strong momentum plays for investors seeking attractive entry points. Shares of Micron, Seagate and Western Digital have already gained 818.7%, 523.5% and 816.5%, respectively, over the past year.
Inside the Driehaus Strategy
Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average as one of the key criteria when creating a portfolio aligned with Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading above its 50-day moving average, signaling an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also prioritized in this strategy, which was designed to deliver better long-term returns.
Research Wizard Screening Parameters
To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, offer the best upside potential.
Strong EPS growth history ensures an improving business
• Trailing 12-month EPS growth greater than 0 and industry median
Higher EPS growth compared to the industry average indicates superior earnings performance
• Last four-quarter average EPS surprise greater than 5%
Solid EPS surprise history indicates better price performance
• Positive percentage change in 50-day moving average and relative strength over 4 weeks
Positive percentage change in the 50-day moving average and the relative strength signal uptrend
• Momentum Score equal to or less than B
A favorable momentum score indicates that it is ideal to capitalize on the momentum with the highest probability of success.
These few parameters have narrowed the universe of more than 7,743 stocks to only 23.
Here are three of the 23 stocks:
Micron Technology
Micron qualifies as an AI infrastructure stock as its cutting-edge high-bandwidth memory chips are essential for powering AI accelerators and data centers. It has a Momentum Score of A. The trailing four-quarter earnings surprise for MU is 21.1%, on average. The company’s expected earnings growth rate for the current year is 675.2% (read more: Micron + One Explosive AI Memory Stock to Buy Before H2 2026).
Seagate Technology
Seagate is an AI infrastructure stock because its high-capacity hard drives support the growing data storage needs of AI data centers. It has a Momentum Score of A. The trailing four-quarter earnings surprise for STX is 10.7%, on average. The company’s expected earnings growth rate for the current year is 84.3% (read more: This AI Memory Stock Soars 600% - Could Be the Next NVIDIA).
Western Digital
Western Digital qualifies as an AI infrastructure stock because it provides the large-scale data capacity required for AI workloads and hyperscale computing. It has a Momentum Score of A. The trailing four-quarter earnings surprise for WDC is 11.6%, on average. The company’s expected earnings growth rate for the current year is 103.9%.
View the Zacks #1 Rank List
Image: Bigstock
3 AI Infrastructure Stocks Up 500%+ With More Upside in 2H 2026
Key Takeaways
For investors seeking outsized returns heading into the second half of the year, they should focus on high-momentum stocks, following Richard Driehaus’s renowned “buy high and sell higher” strategy that earned him a place on Barron’s All-Century Team.
Using the Driehaus momentum-investing framework, artificial intelligence (AI) infrastructure stocks such as Micron Technology, Inc. (MU - Free Report) , Seagate Technology Holdings plc (STX - Free Report) and Western Digital Corporation (WDC - Free Report) have emerged as strong momentum plays for investors seeking attractive entry points. Shares of Micron, Seagate and Western Digital have already gained 818.7%, 523.5% and 816.5%, respectively, over the past year.
Inside the Driehaus Strategy
Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average as one of the key criteria when creating a portfolio aligned with Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading above its 50-day moving average, signaling an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also prioritized in this strategy, which was designed to deliver better long-term returns.
Research Wizard Screening Parameters
To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, offer the best upside potential.
• Zacks Rank equal to #1
No matter whether the market is good or bad, stocks with a Zacks Rank #1 have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
• Last 5-year average EPS growth rates above 2%
Strong EPS growth history ensures an improving business
• Trailing 12-month EPS growth greater than 0 and industry median
Higher EPS growth compared to the industry average indicates superior earnings performance
• Last four-quarter average EPS surprise greater than 5%
Solid EPS surprise history indicates better price performance
• Positive percentage change in 50-day moving average and relative strength over 4 weeks
Positive percentage change in the 50-day moving average and the relative strength signal uptrend
• Momentum Score equal to or less than B
A favorable momentum score indicates that it is ideal to capitalize on the momentum with the highest probability of success.
These few parameters have narrowed the universe of more than 7,743 stocks to only 23.
Here are three of the 23 stocks:
Micron Technology
Micron qualifies as an AI infrastructure stock as its cutting-edge high-bandwidth memory chips are essential for powering AI accelerators and data centers. It has a Momentum Score of A. The trailing four-quarter earnings surprise for MU is 21.1%, on average. The company’s expected earnings growth rate for the current year is 675.2% (read more: Micron + One Explosive AI Memory Stock to Buy Before H2 2026).
Seagate Technology
Seagate is an AI infrastructure stock because its high-capacity hard drives support the growing data storage needs of AI data centers. It has a Momentum Score of A. The trailing four-quarter earnings surprise for STX is 10.7%, on average. The company’s expected earnings growth rate for the current year is 84.3% (read more: This AI Memory Stock Soars 600% - Could Be the Next NVIDIA).
Western Digital
Western Digital qualifies as an AI infrastructure stock because it provides the large-scale data capacity required for AI workloads and hyperscale computing. It has a Momentum Score of A. The trailing four-quarter earnings surprise for WDC is 11.6%, on average. The company’s expected earnings growth rate for the current year is 103.9%.