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Micron & One AI Infrastructure Stock to Buy Now for Big Upside
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Key Takeaways
Micron expects fiscal Q4 2026 revenues of about $50B after a strong fiscal Q3.
MU lifted fiscal Q3 gross margin to 84.6%, supported by AI memory demand and pricing.
WDC expects fiscal Q4 2026 revenues of about $3.65B, with gross margin of 51-52%.
Artificial intelligence (AI) infrastructure stocks have faced significant pressure this month as investors questioned whether the pace of AI spending would remain strong. However, the long-term AI demand remains intact, supported by strong demand for graphics processing units, networking equipment, memory and storage.
Therefore, for long-term investors, the recent pullback could present an attractive investment opportunity. Among the standout AI infrastructure stocks are Micron Technology, Inc. (MU - Free Report) and Western Digital Corporation (WDC - Free Report) , whose shares have surged by 229.3% and 214.7%, respectively, so far this year. Let’s see in detail what makes these companies a strong buy now, and why they still have significant upside potential –
Micron’s AI Memory Boom Drives Growth and Upside Potential
Micron’s stock wobbled recently due to post-fiscal third-quarter 2026 earnings profit-taking and concerns about the sustainability of the present high memory prices. But Micron has emerged as an essential supplier of AI infrastructure and is no longer considered a cyclical memory stock. The company’s fundamentals remain intact as its recent quarterly results beat expectations, and its outlook remains strong, driven by robust AI memory demand.
Micron reported revenues of $41.46 billion in the fiscal third quarter of 2026, a 74% sequential increase, according to investors.micron.com. For the fiscal fourth quarter of 2026, the company expects revenues of $50 billion, suggesting that demand for Micron’s state-of-the-art high-bandwidth memory chips used in AI servers remains strong. Growing demand for Micron’s memory products and strong pricing power boosted its profitability, with gross margin improving to 84.6% for the fiscal third quarter from 37.7% a year earlier.
Micron’s strong cash inflows and strategic deals have further enhanced its long-term revenue visibility and reinforced its growth outlook. Consequently, the company’s expected earnings growth rate for the current year is 791%. The Zacks Consensus Estimate of $73.86 for MU’s earnings per share is up 502% year over year.
Image Source: Zacks Investment Research
Brokers also remain hopeful about the company’s prospects. The average short-term price target for MU stock stands at $1,422.77, implying a potential upside of 51.6% from the recent closing price of $938.38. The highest price target of $2,000 indicates a possible upside of 113.1%, highlighting strong investor confidence in Micron’s long-term growth outlook (read more: Micron Stock Drops 10%+ After Earnings - Is This a Buying Opportunity?).
Image Source: Zacks Investment Research
Western Digital: Strong AI Demand Fuels More Upside
Western Digital’s revenues totaled $3.34 billion in the fiscal third quarter of 2026, up 45% year over year, according to the company’s press release. Revenues are expected to be even stronger in the fiscal fourth quarter of 2026, at $3.65 billion, plus or minus $100 million. The strong outlook suggests that AI infrastructure spending remains robust, as cloud and enterprise customers continue to invest heavily in high-capacity storage to support expanding AI workloads.
Western Digital’s non-GAAP gross margin increased to 50.5% in the fiscal third quarter from 40.1% in the year-ago period. What’s more, management expects non-GAAP gross margin to expand further to 51-52% in the fiscal fourth quarter of 2026. This shows the company can sell more high-value enterprise HDDs amid a favorable pricing environment. Higher gross margins also provide greater financial flexibility to invest in research and development, strengthen the balance sheet, drive earnings growth and boost the share price over the long run.
The company’s earnings outlook remains equally strong, with expected earnings growth of 104.1% for the current year. The Zacks Consensus Estimate of $10.06 for WDC’s earnings per share is up 54.8% year over year.
Image Source: Zacks Investment Research
Brokers are also optimistic about Western Digital’s growth prospects. They forecast the average short-term price target for WDC stock at $608.27, implying a 14.3% increase from the last closing price of $532.1. The highest target is $1,050, suggesting a potential upside of 97.3%, highlighting continued confidence in Western Digital’s long-term growth potential.
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Micron & One AI Infrastructure Stock to Buy Now for Big Upside
Key Takeaways
Artificial intelligence (AI) infrastructure stocks have faced significant pressure this month as investors questioned whether the pace of AI spending would remain strong. However, the long-term AI demand remains intact, supported by strong demand for graphics processing units, networking equipment, memory and storage.
Therefore, for long-term investors, the recent pullback could present an attractive investment opportunity. Among the standout AI infrastructure stocks are Micron Technology, Inc. (MU - Free Report) and Western Digital Corporation (WDC - Free Report) , whose shares have surged by 229.3% and 214.7%, respectively, so far this year. Let’s see in detail what makes these companies a strong buy now, and why they still have significant upside potential –
Micron’s AI Memory Boom Drives Growth and Upside Potential
Micron’s stock wobbled recently due to post-fiscal third-quarter 2026 earnings profit-taking and concerns about the sustainability of the present high memory prices. But Micron has emerged as an essential supplier of AI infrastructure and is no longer considered a cyclical memory stock. The company’s fundamentals remain intact as its recent quarterly results beat expectations, and its outlook remains strong, driven by robust AI memory demand.
Micron reported revenues of $41.46 billion in the fiscal third quarter of 2026, a 74% sequential increase, according to investors.micron.com. For the fiscal fourth quarter of 2026, the company expects revenues of $50 billion, suggesting that demand for Micron’s state-of-the-art high-bandwidth memory chips used in AI servers remains strong. Growing demand for Micron’s memory products and strong pricing power boosted its profitability, with gross margin improving to 84.6% for the fiscal third quarter from 37.7% a year earlier.
Micron’s strong cash inflows and strategic deals have further enhanced its long-term revenue visibility and reinforced its growth outlook. Consequently, the company’s expected earnings growth rate for the current year is 791%. The Zacks Consensus Estimate of $73.86 for MU’s earnings per share is up 502% year over year.
Image Source: Zacks Investment Research
Brokers also remain hopeful about the company’s prospects. The average short-term price target for MU stock stands at $1,422.77, implying a potential upside of 51.6% from the recent closing price of $938.38. The highest price target of $2,000 indicates a possible upside of 113.1%, highlighting strong investor confidence in Micron’s long-term growth outlook (read more: Micron Stock Drops 10%+ After Earnings - Is This a Buying Opportunity?).
Image Source: Zacks Investment Research
Western Digital: Strong AI Demand Fuels More Upside
Western Digital’s revenues totaled $3.34 billion in the fiscal third quarter of 2026, up 45% year over year, according to the company’s press release. Revenues are expected to be even stronger in the fiscal fourth quarter of 2026, at $3.65 billion, plus or minus $100 million. The strong outlook suggests that AI infrastructure spending remains robust, as cloud and enterprise customers continue to invest heavily in high-capacity storage to support expanding AI workloads.
Western Digital’s non-GAAP gross margin increased to 50.5% in the fiscal third quarter from 40.1% in the year-ago period. What’s more, management expects non-GAAP gross margin to expand further to 51-52% in the fiscal fourth quarter of 2026. This shows the company can sell more high-value enterprise HDDs amid a favorable pricing environment. Higher gross margins also provide greater financial flexibility to invest in research and development, strengthen the balance sheet, drive earnings growth and boost the share price over the long run.
The company’s earnings outlook remains equally strong, with expected earnings growth of 104.1% for the current year. The Zacks Consensus Estimate of $10.06 for WDC’s earnings per share is up 54.8% year over year.
Image Source: Zacks Investment Research
Brokers are also optimistic about Western Digital’s growth prospects. They forecast the average short-term price target for WDC stock at $608.27, implying a 14.3% increase from the last closing price of $532.1. The highest target is $1,050, suggesting a potential upside of 97.3%, highlighting continued confidence in Western Digital’s long-term growth potential.
Image Source: Zacks Investment Research
Both Micron and Western Digital have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.