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

By Will Healy – Mar 14, 2026 at 3:45PM ESTKey PointsMicron is one of only three companies producing the high-bandwidth memory (HBM) needed to advance AI.Revenue growth continues to accelerate.The valuation does not appear to reflect its growth rate.Artificial intelligence (AI) investing seems to have centered around Nvidia more than any other individual stock. This is understandable, as the company's AI accelerators have redefined an industry, and no competitor has yet caught up technically. Still, investors have to remember that Nvidia is not the only stock driving outsized returns from AI. Increasingly, the focus has turned to another chip stock, and investors may want to look into this name before more investors start paying attention. Image source: Micron. The next great AI stock Increasingly, memory chip giant Micron Technology (MU +5.08%) is emerging as an AI stock set for outsized growth. When it comes to Micron, several tailwinds are coming together to take this stock higher. Micron has become a leader in high-bandwidth memory (HBM). HBM delivers massive data throughput while reducing latency and power consumption. This is critical for running the most advanced AI applications. Moreover, only three companies produce this type of memory. South Korea-based Samsung and SK Hynix are its competitors. However, from an investor standpoint, Micron is the only American company of the three and the only one trading on U.S. markets, making it the only feasible choice for most investors. Furthermore, the high demand for HBM has helped address a critical problem with Micron stock. The semiconductor industry is highly cyclical, and unfortunately, down cycles have wiped out all the gains Micron earned in the up cycle in past years. Investors should not assume that the cycles have disappeared, and at some point, Micron will almost certainly face another down cycle. Nonetheless, thanks to the demand for HBM, down cycles have not hit Micron's financials as hard, meaning the stock is in a long-term uptrend. Over the last five years, the stock has been up by nearly 350%, with most of that gain occurring over the last year. ExpandNASDAQ: MUMicron TechnologyToday's Change(5.08%) $20.61Current Price$425.96Key Data PointsMarket Cap$480BDay's Range$413.00 - $429.2852wk Range$61.54 - $455.50Volume1.6MAvg Vol35MGross Margin45.53%Dividend Yield0.11% What the numbers say about Micron The financials likely helped drive much of that stock price growth. In the first quarter of fiscal 2026 (ended Nov. 27), revenue of $13.6 billion rose by 56% yearly. That exceeded the 49% annual increase in revenue in fiscal 2025. Moreover, both the cost of goods sold and operating expenses rose at a much slower pace. Thus, the fiscal first-quarter net income of more than $5.2 billion far surpassed the $1.9 billion earned in the year-ago quarter. Although that did not match the 11-fold net income gain in fiscal 2025, it still amounted to huge growth. Furthermore, analysts forecast 109% revenue growth rate in fiscal 2026, and even with that growth, the valuation remains muted. It is possible that long-term investors remember the brutal downturns of the past and do not want to award it a premium valuation. Still, growth forecasts do not show a reversal of growth occurring anytime soon. Thus, the 39 price-to-earnings (P/E) ratio seems reasonable considering how fast its profits grow. Additionally, with a forward P/E of just 12, it looks increasingly likely investors will keep bidding Micron stock higher. Consider Micron stock Given Micron's importance to AI and its valuation relative to its revenue and income growth, investors should not expect its stock price growth to slow anytime soon. Admittedly, Micron was one of the more notable victims of past downturns in the chip industry, especially when compared to chip industry peers who are not in the memory business. To this day, its relatively low valuation may reflect some of those worries. However, Micron's HBM memory is a critical component in AI advancement, and the fact that it is only one of three companies making this memory gives it a distinct competitive advantage. That means that at least for the foreseeable future, a brutal stock sell-off is less likely. Still, even with the risks of a severe down cycle, the rapid growth and falling valuation arguably make Micron too cheap to ignore.Read NextMar 14, 2026 •By Keithen DruryIs Micron Stock a Buy Now?Mar 14, 2026 •By Harsh ChauhanMicron Is the Best-Performing Artificial Intelligence (AI) Stock of the Past Year -- Up 318%.

Can It Keep Going in 2026?Mar 13, 2026 •By Dave KovaleskiThe 3 Best-Performing Tech Stocks in the S&P 500 This WeekMar 13, 2026 •By John BromelsIran Fears Crushed Korean Chip Stocks. Here's 1 Thing American Memory Investors Should Watch.Mar 13, 2026 •By Adam SpataccoWhere Will Micron Stock Be in 5 Years?Mar 12, 2026 •By Keith NoonanWhy Micron Stock Is Sinking TodayAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedMicron TechnologyNASDAQ: MU$425.96(+5.08%)+$20.61*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.