1 AI Stock I'm Buying Before It Goes Parabolic in 2026

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In a determination that whitethorn astonishment nobody, artificial quality (AI) hyperscalers are readying to treble down connected their infrastructure walk this year. According to FactSet Research, large tech is forecast to walk implicit $500 cardinal expanding their information halfway footprints and procuring much chips successful 2026.

What investors are astir apt overlooking is that rising superior expenditures (capex) is not conscionable bully quality for Nvidia, Advanced Micro Devices, Broadcom, oregon Taiwan Semiconductor Manufacturing.

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Read connected to larn wherefore Micron Technology (NASDAQ: MU) should beryllium the AI spot banal connected your radar this twelvemonth and wherefore I'm going to bargain shares.

Micron Technology office  with motion   retired  front.

Image source: Micron Technology.

As the AI infrastructure epoch comes into focus, developers person their eyes connected usage cases successful areas specified arsenic agentic AI, robotics, and autonomous systems. From a method standpoint, these applications are acold much blase than gathering a chatbot.

In essence, AI workloads are going to turn exponentially successful the coming years arsenic investments successful grooming and inference scale. From a budgeting standpoint, this means that large tech is nary longer acutely focused connected procuring arsenic galore general-purpose chips arsenic possible.

Expanding AI workloads fuels request for further representation and storage. Micron is simply a large subordinate successful the satellite of high-bandwidth representation (HBM), dynamic random entree representation (DRAM), and NAND chips.

Over the past year, shares of Micron person soared 277%. Indeed, with this level of momentum, immoderate investors whitethorn beryllium skittish astir the banal continuing to rise.

Even with specified meteoric gains, however, Micron inactive trades astatine a humble guardant price-to-earnings (P/E) ratio. This pales successful examination to different starring semiconductor stocks on the AI spot worth concatenation -- which boast guardant net multiples successful the 30ish scope astatine a minimum.

MU PE Ratio (Forward) Chart

MU PE Ratio (Forward) information by YCharts

For this fiscal year, Wall Street is forecasting Micron's net per stock (EPS) to triple compared to past year. This seems tenable fixed the secular tailwinds fueling investments successful AI infrastructure and the circumstantial value of representation and retention to that narrative.

Should Micron's guardant P/E commercialized much successful enactment with different spot leaders, shares could beryllium headed toward $1,000 -- astir 150% higher than they are today.

No substance wherever Micron banal ends up by year-end 2026, I americium assured shares volition inclination meaningfully higher implicit the agelong term.

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