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AI infrastructure needs are still in their early stages.
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Micron and Qualcomm are likely to be the next market leaders and are currently reasonably valued.
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Both companies benefit from the increasing popularity of artificial intelligence around the world.
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10 stocks we like better than Micron Technology ›
Following strong gains in 2024 and 2025, U.S. stocks enter 2026 with strong momentum. The performance was largely driven by a surge in artificial intelligence (AI)-related stocks. Companies of all types are increasing investments in AI infrastructure and software and embarking on full-scale production-level implementations.
Grand View Research estimates that the global AI market could grow from $390.9 billion in 2025 to $3.5 trillion in 2033, meaning that AI adoption is still in its early stages. Against this backdrop, there are still a handful of AI-focused companies with attractive valuations relative to their long-term growth potential and could become market leaders in the next bull market.
Micron Technology (NASDAQ:MU) Entering 2026, the company’s financial and operating position is impressive, supported by strong demand for AI-driven memory solutions. The company’s revenue increased 56% year over year to $13.6 billion in the first quarter of fiscal 2026 (ending November 27, 2025).
Demand for its DRAM, NAND and high-bandwidth memory (HBM) products has significantly outstripped available supply, giving Micron Technology greater pricing power and expanding profit margins. Management stated that the company’s HBM production for 2026 has been fully allocated, and the output and price have been agreed with customers. This contract visibility gives Micron strong revenue and pricing certainty.
Unlike previous memory cycles that relied heavily on short-term inventory swings, the current cycle is driven by years of building out AI infrastructure. according to Goldman Sachs It is estimated that hyperscale AI companies are expected to spend nearly $527 billion in AI-related capital expenditures by 2026. Each new generation of AI chips also requires significantly higher performance memory to run AI workloads, including HBM and high-capacity SSDs or storage memory.
Micron also focuses on strict enforcement. The company’s first-quarter free cash flow margin was nearly 30%, and it reduced debt by $2.7 billion. The stock trades at 8.6 times forward earnings, which is relatively modest considering its market-leading position. With these factors in mind, Micron seems like a worthy choice right now.
Qualcomm (Nasdaq: Qualcomm) Entering 2026, the company will become a diversified artificial intelligence semiconductor company, not just a mobile phone company. The company generated $44 billion in non-GAAP revenue and $12.8 billion in free cash flow in fiscal 2025 (ending September 28, 2025), while also maintaining healthy operating margins. The company has the financial flexibility to invest and expand in multiple AI-driven markets.