The Artificial Intelligence (AI) Stock That Refuses to Slow Down, and It's Not Nvidia

Artificial quality (AI) investing seems to person centered astir Nvidia much than immoderate different idiosyncratic stock. This is understandable, arsenic the company's AI accelerators person redefined an industry, and nary rival has yet caught up technically.

Still, investors person to retrieve that Nvidia is not the lone banal driving outsized returns from AI. Increasingly, the absorption has turned to different spot stock, and investors whitethorn privation to look into this sanction earlier much investors commencement paying attention.

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Increasingly, representation spot elephantine Micron Technology (NASDAQ: MU) is emerging arsenic an AI banal acceptable for outsized growth.

When it comes to Micron, respective tailwinds are coming unneurotic to instrumentality this banal higher. Micron has go a person successful high-bandwidth representation (HBM). HBM delivers monolithic information throughput portion reducing latency and powerfulness consumption. This is captious for moving the astir precocious AI applications.

Moreover, lone 3 companies nutrient this benignant of memory. South Korea-based Samsung and SK Hynix are its competitors. However, from an capitalist standpoint, Micron is the lone American institution of the 3 and the lone 1 trading connected U.S. markets, making it the lone feasible prime for astir investors.

Furthermore, the precocious request for HBM has helped code a captious occupation with Micron stock. The semiconductor manufacture is highly cyclical, and unfortunately, down cycles person wiped retired each the gains Micron earned successful the up rhythm successful past years.

Investors should not presume that the cycles person disappeared, and astatine immoderate point, Micron volition astir surely look different down cycle. Nonetheless, acknowledgment to the request for HBM, down cycles person not deed Micron's financials arsenic hard, meaning the banal is successful a semipermanent uptrend.

Over the past 5 years, the banal has been up by astir 350%, with astir of that summation occurring implicit the past year.

The financials apt helped thrust overmuch of that banal terms growth. In the archetypal 4th of fiscal 2026 (ended Nov. 27), gross of $13.6 cardinal roseate by 56% yearly. That exceeded the 49% yearly summation successful gross successful fiscal 2025.

Moreover, some the outgo of goods sold and operating expenses roseate astatine a overmuch slower pace. Thus, the fiscal first-quarter nett income of much than $5.2 cardinal acold surpassed the $1.9 cardinal earned successful the year-ago quarter. Although that did not lucifer the 11-fold nett income summation successful fiscal 2025, it inactive amounted to immense growth.