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4 Semiconductor Stocks to Buy Amid Top Hyperscalers' $745B AI CapEx Bet
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Key Takeaways
Micron benefits from rising HBM3E and HBM4 demand, improving memory pricing and capacity expansion.
FormFactor gains as AI accelerators, HBM and advanced packaging increase complex chip-testing needs.
NVIDIA's GPUs, networking and software position it to benefit from expanding hyperscaler AI spending.
Artificial intelligence (AI) is rapidly changing the semiconductor industry, and the next leg of growth could be driven by an enormous increase in infrastructure spending. Four top hyperscalers, Amazon, Alphabet, Microsoft and Meta Platforms, are expected to spend roughly $720 billion to $745 billion on capital expenditures in 2026, with a large portion directed toward AI infrastructure.
This spending is likely to support demand for AI accelerators, high-bandwidth memory (HBM), networking chips, testing equipment and advanced semiconductor manufacturing. As hyperscalers expand data-center capacity, semiconductor companies positioned across different parts of the AI supply chain could enjoy strong and sustained growth.
According to Gartner, worldwide AI-related spending is expected to increase 47% and reach $2.59 trillion in 2026. The expansion is not limited to cloud companies. Enterprises across industries are deploying AI applications, which require powerful processors, HBM, advanced packaging and sophisticated semiconductor equipment.
Investors looking to benefit from the AI Capex boom should consider semiconductor companies that have strong technology positions and long-term growth drivers.
Micron Technology, Inc. (MU - Free Report) , FormFactor, Inc. (FORM - Free Report) , Texas Instruments Incorporated (TXN - Free Report) and NVIDIA Corporation (NVDA - Free Report) are four such semiconductor stocks that appear well-positioned to benefit from the ongoing AI Capex boom. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.
Micron: Riding on HBM Supercycle
Micron is one of the clearest beneficiaries of the AI infrastructure boom because AI data centers require substantially more memory than traditional computing systems. The company is benefiting from rising demand for HBM3E and next-generation HBM4 memory, which are essential for high-end AI processors. HBM allows processors to access massive amounts of data at very high speeds, making it increasingly important as AI models become larger and more complex.
Micron is also benefiting from improving memory pricing and a more disciplined industry supply environment. The company's expansion of HBM production capacity should allow it to capture more of the AI-driven memory opportunity. With hyperscalers continuing to invest aggressively in AI servers, Micron has a strong opportunity to sustain revenue and earnings growth.
The Zacks Consensus Estimate for Micron’s fiscal 2026 revenue and earnings per share (EPS) indicates year-over-year increases of approximately 247% and 791%, respectively. MU currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
FormFactor offers semiconductor test and measurement solutions used throughout the chip manufacturing process. While it does not manufacture AI processors itself, its products are critical for ensuring that increasingly complex chips work properly.
The growth of AI accelerators and advanced memory is increasing the need for sophisticated testing. Semiconductor manufacturers must test chips at multiple stages to identify defects and improve yields, particularly as manufacturing processes become more complicated.
FormFactor's HBM and advanced packaging exposures provide an additional growth opportunity. As AI processors increasingly rely on advanced memory architectures, testing requirements are becoming more demanding. The company's position in semiconductor testing, therefore, gives investors exposure to AI infrastructure without depending entirely on processor sales.
The Zacks Consensus Estimate for FormFactor’s 2026 revenues and EPS indicates a year-over-year jump of approximately 29% and 135%, respectively. FORM currently sports a Zacks Rank #1 and has a Growth Score of A.
Texas Instruments may not be viewed as a direct AI stock, but its analog and embedded chips are essential components of data-center infrastructure.
AI data centers require large amounts of power, and efficient power management is becoming increasingly important as computing workloads rise. Texas Instruments supplies power-management and analog semiconductors that help regulate electricity and improve the efficiency of electronic systems.
The company's broad product portfolio and manufacturing scale provide additional advantages. As hyperscalers build more data centers, demand for power-management solutions should increase across servers, networking equipment and other infrastructure. This gives Texas Instruments a potentially durable way to benefit from AI capital spending while maintaining exposure to markets beyond AI.
The Zacks Consensus Estimate for Texas Instruments’ 2026 revenues and EPS suggests year-over-year growth of approximately 23% and 55%, respectively. TXN currently sports a Zacks Rank #1 and has a Growth Score of B.
Texas Instruments Incorporated Price and Consensus
NVIDIA remains one of the strongest direct beneficiaries of hyperscaler AI investment. Its graphics processing units (GPUs) have become the backbone of large-scale AI training and inference. NVIDIA's accelerated computing platform combines GPUs, networking products and software, creating a broader ecosystem that makes its technology difficult for customers to replace quickly.
The company's Blackwell and Vera Rubin platforms are designed to deliver substantially greater performance for increasingly demanding AI workloads. As Amazon, Alphabet, Microsoft and Meta expand their AI infrastructure, demand for NVIDIA's processors and networking solutions should remain robust.
NVIDIA's technology leadership and deep relationships with major cloud companies make it a key beneficiary of the AI infrastructure spending cycle.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 revenues and EPS indicates year-over-year increases of approximately 80% and 91%, respectively. NVDA currently carries a Zacks Rank #2 and has a Growth Score of A.
View the Zacks #1 Rank List
Image: Shutterstock
4 Semiconductor Stocks to Buy Amid Top Hyperscalers' $745B AI CapEx Bet
Key Takeaways
Artificial intelligence (AI) is rapidly changing the semiconductor industry, and the next leg of growth could be driven by an enormous increase in infrastructure spending. Four top hyperscalers, Amazon, Alphabet, Microsoft and Meta Platforms, are expected to spend roughly $720 billion to $745 billion on capital expenditures in 2026, with a large portion directed toward AI infrastructure.
This spending is likely to support demand for AI accelerators, high-bandwidth memory (HBM), networking chips, testing equipment and advanced semiconductor manufacturing. As hyperscalers expand data-center capacity, semiconductor companies positioned across different parts of the AI supply chain could enjoy strong and sustained growth.
According to Gartner, worldwide AI-related spending is expected to increase 47% and reach $2.59 trillion in 2026. The expansion is not limited to cloud companies. Enterprises across industries are deploying AI applications, which require powerful processors, HBM, advanced packaging and sophisticated semiconductor equipment.
Investors looking to benefit from the AI Capex boom should consider semiconductor companies that have strong technology positions and long-term growth drivers.
Micron Technology, Inc. (MU - Free Report) , FormFactor, Inc. (FORM - Free Report) , Texas Instruments Incorporated (TXN - Free Report) and NVIDIA Corporation (NVDA - Free Report) are four such semiconductor stocks that appear well-positioned to benefit from the ongoing AI Capex boom. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.
Micron: Riding on HBM Supercycle
Micron is one of the clearest beneficiaries of the AI infrastructure boom because AI data centers require substantially more memory than traditional computing systems. The company is benefiting from rising demand for HBM3E and next-generation HBM4 memory, which are essential for high-end AI processors. HBM allows processors to access massive amounts of data at very high speeds, making it increasingly important as AI models become larger and more complex.
Micron is also benefiting from improving memory pricing and a more disciplined industry supply environment. The company's expansion of HBM production capacity should allow it to capture more of the AI-driven memory opportunity. With hyperscalers continuing to invest aggressively in AI servers, Micron has a strong opportunity to sustain revenue and earnings growth.
The Zacks Consensus Estimate for Micron’s fiscal 2026 revenue and earnings per share (EPS) indicates year-over-year increases of approximately 247% and 791%, respectively. MU currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
FormFactor: AI Boosts Chip Testing Demand
FormFactor offers semiconductor test and measurement solutions used throughout the chip manufacturing process. While it does not manufacture AI processors itself, its products are critical for ensuring that increasingly complex chips work properly.
The growth of AI accelerators and advanced memory is increasing the need for sophisticated testing. Semiconductor manufacturers must test chips at multiple stages to identify defects and improve yields, particularly as manufacturing processes become more complicated.
FormFactor's HBM and advanced packaging exposures provide an additional growth opportunity. As AI processors increasingly rely on advanced memory architectures, testing requirements are becoming more demanding. The company's position in semiconductor testing, therefore, gives investors exposure to AI infrastructure without depending entirely on processor sales.
The Zacks Consensus Estimate for FormFactor’s 2026 revenues and EPS indicates a year-over-year jump of approximately 29% and 135%, respectively. FORM currently sports a Zacks Rank #1 and has a Growth Score of A.
FormFactor, Inc. Price and Consensus
FormFactor, Inc. price-consensus-chart | FormFactor, Inc. Quote
Texas Instruments: Expanding AI Exposure
Texas Instruments may not be viewed as a direct AI stock, but its analog and embedded chips are essential components of data-center infrastructure.
AI data centers require large amounts of power, and efficient power management is becoming increasingly important as computing workloads rise. Texas Instruments supplies power-management and analog semiconductors that help regulate electricity and improve the efficiency of electronic systems.
The company's broad product portfolio and manufacturing scale provide additional advantages. As hyperscalers build more data centers, demand for power-management solutions should increase across servers, networking equipment and other infrastructure. This gives Texas Instruments a potentially durable way to benefit from AI capital spending while maintaining exposure to markets beyond AI.
The Zacks Consensus Estimate for Texas Instruments’ 2026 revenues and EPS suggests year-over-year growth of approximately 23% and 55%, respectively. TXN currently sports a Zacks Rank #1 and has a Growth Score of B.
Texas Instruments Incorporated Price and Consensus
Texas Instruments Incorporated price-consensus-chart | Texas Instruments Incorporated Quote
NVIDIA: The AI Accelerator Leader
NVIDIA remains one of the strongest direct beneficiaries of hyperscaler AI investment. Its graphics processing units (GPUs) have become the backbone of large-scale AI training and inference. NVIDIA's accelerated computing platform combines GPUs, networking products and software, creating a broader ecosystem that makes its technology difficult for customers to replace quickly.
The company's Blackwell and Vera Rubin platforms are designed to deliver substantially greater performance for increasingly demanding AI workloads. As Amazon, Alphabet, Microsoft and Meta expand their AI infrastructure, demand for NVIDIA's processors and networking solutions should remain robust.
NVIDIA's technology leadership and deep relationships with major cloud companies make it a key beneficiary of the AI infrastructure spending cycle.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 revenues and EPS indicates year-over-year increases of approximately 80% and 91%, respectively. NVDA currently carries a Zacks Rank #2 and has a Growth Score of A.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote