NVIDIA Corporation (NVDA) has experienced a 4.8% decline in its stock price this year amid concerns over a slowdown in artificial intelligence (AI) infrastructure spending. Concurrently, Micron Technology, Inc. (MU) and Applied Materials, Inc. (AMAT) have seen their stock prices rise by 28.3% and 35.6%, respectively, thanks to increasing demand for AI-related components.
Micron’s high-bandwidth memory (HBM) chips are in high demand, with projected revenues soaring to $33.5 billion in Q3 fiscal 2026 from $23.86 billion in Q2. This is accompanied by an expected gross margin of 81% and an astonishing earnings growth rate of 603.9% for the current year. Analysts estimate a 34.5% price target increase for Micron stock, suggesting a potential upside of up to 104.8%.
Applied Materials expects revenues of $7.65 billion for Q2 fiscal 2026, following $7.01 billion in Q1. The company has maintained a gross margin of 49.1% and is projected to achieve a 17.8% earnings growth rate this year. Analysts forecast a 15.5% price target increase for Applied Materials, indicating a potential upside of 43.5%.
