The Overlooked AI Chip Stock That Could Outperform Nvidia in 2026
The Motley Fool • • business
Key Points:
- Nvidia remains the leader in AI chips with its GPUs, which rely heavily on high-bandwidth memory (HBM) to enhance performance for training large language models and AI inference.
- HBM demand is soaring due to its critical role in AI chip efficiency, but its production requires significantly more wafer capacity than standard DRAM, causing a supply shortage and driving up DRAM prices.
- Micron Technology, a major DRAM and NAND supplier, is well-positioned to benefit from this trend, reporting a 57% revenue increase and a 2.7-fold rise in adjusted EPS in its latest fiscal quarter, alongside substantial margin expansion.
- Micron forecasts the HBM market to grow at 40% annually through 2028, reaching $
