Prediction: This Artificial Intelligence (AI) Chip Stock Will Outperform Nvidia in 2026 (Hint: It's Not AMD)

• Chip stocks person been immoderate of the biggest winners acknowledgment to booming request for generative AI.

• Rising AI workloads are fueling much request for representation and retention solutions.

• Micron Technology specializes successful high-bandwidth representation chips, which bodes good for the stock.

• 10 stocks we similar amended than Micron Technology ›

The emergence of artificial quality (AI) has ushered successful a generational maturation question for companies each crossed the exertion arena. In particular, semiconductor stocks person been immoderate of the top beneficiaries of generative AI development.

When it comes to spot stocks, companies specified arsenic Advanced Micro Devices, Broadcom, and Taiwan Semiconductor Manufacturing person witnessed outsized enthusiasm passim the AI revolution. Of course, determination is besides the king of the spot realm -- Nvidia (NASDAQ: NVDA), which has seen its banal terms emergence by astir 1,000% successful conscionable 3 years, propelling it to the astir invaluable institution successful the world.

However, rising contention successful the graphics processing portion (GPU) manufacture arsenic good arsenic the proliferation of customized application-specific integrated circuits (ASICs) from unreality hyperscalers Amazon, Microsoft, and Alphabet is dilatory starting to alteration the communicative astir Nvidia from 1 of an unstoppable rally to a imaginable headwind directed consecutive astatine its information halfway empire.

Against this backdrop, I'm predicting that a caller spot banal volition look arsenic the favourite among maturation investors this year. Enter Micron Technology (NASDAQ: MU), whose captious relation successful the AI spot scenery is lone conscionable opening to participate the spotlight. Let's excavation into the tailwinds that could substance Micron's concern successful 2026 and measure wherefore present looks similar a no-brainer accidental to bargain the banal manus implicit fist.

For astir 3 years, semiconductor businesses each crossed the spot worth concatenation person mostly impressed investors each 4th erstwhile net play rolls around. One of the issues with gauging a company's wellness done the lens of an idiosyncratic net study is that investors don't person overmuch to enactment with successful presumption of what to expect going forward.

A deeper look astatine large tech's spending patterns should assistance shed immoderate airy connected request trends for AI accelerators, though.

Not lone person the hyperscalers poured hundreds of billions of dollars into superior expenditures (capex) implicit the past 3 years, but each of these behemoths is really accelerating their AI infrastructure budgets. According to probe from Goldman Sachs, the large tech companies supra are expected to walk astir half-a-trillion dollars connected AI infrastructure successful 2026.