The rapid growth of artificial intelligence (AI) is set to continue in 2026 and beyond, generating significant demand for AI hardware, software, and cloud infrastructure globally. Companies such as Micron Technology, Inc., Palantir Technologies Inc, and NVIDIA Corporation have already capitalized on this trend, positioning themselves as attractive investment opportunities for the upcoming year.
Entering fiscal 2026, Micron’s status as the only U.S.-based memory manufacturer provides a competitive edge in the burgeoning AI market. CEO Sanjay Mehrotra noted that the company “is entering fiscal 2026 with strong momentum.” The skyrocketing demand for Micron’s high-bandwidth memory (HBM) chips has significantly bolstered the company’s performance. In its fiscal fourth quarter, Micron reported revenues of $11.32 billion, up from $7.75 billion the previous year. For the entire fiscal year, revenues reached $37.38 billion, a substantial increase from $25.11 billion, as detailed on investors.micron.com.
This surge in demand has prompted Micron to raise its fiscal first-quarter revenue forecast to $12.5 billion. The company’s cloud memory business also showed signs of improvement, leading to a net income of $8.54 billion for fiscal 2025. Based on these results, Micron is projecting an earnings growth rate of 24.4% for the next fiscal year.
Meanwhile, Palantir is witnessing robust expansion as its Artificial Intelligence Platform (AIP) gains traction among clients in both the U.S. commercial and government sectors. This demand is expected to further enhance the company’s revenue and profitability. Palantir has raised its fourth-quarter sales outlook to between $1.327 billion and $1.331 billion. For the entire fiscal year, the revenue forecast has been adjusted to between $4.396 billion and $4.400 billion, as indicated on investors.palantir.com.
In the third quarter, Palantir reported revenues of $1.18 billion, reflecting a year-over-year increase of 63% and an 18% rise sequentially. Revenues from the U.S. commercial sector reached $397 million, up 121% year over year and 29% quarter over quarter, while government revenues totaled $486 million, marking a 52% increase from last year and a 14% rise from the previous quarter. The growth in commercial clientele and increased government contracts signal significant future potential for Palantir, which is forecasting an earnings growth rate of 42.5% for the upcoming year.
NVIDIA continues to leverage its stronghold in the AI hardware market, driven by ongoing demand for its CUDA software platform. Recent approval from the Trump administration to ship H200 AI chips to “approved customers” in China is expected to further catalyze growth. NVIDIA is also well-positioned to benefit from increasing global data center capital expenditures, projected to reach between $3 trillion and $4 trillion annually by 2030.
In its fiscal third-quarter 2026, NVIDIA reported revenues of $57 billion, up 62% year over year and 22% quarter over quarter, according to investor.nvidia.com. The company anticipates fourth-quarter revenues to reach around $65 billion, with a margin of plus or minus 2%. With these encouraging figures, NVIDIA’s expected earnings growth rate for the next year stands at 52.4%.
Currently, NVIDIA and Micron carry a Zacks Rank #1 (Strong Buy), while Palantir holds a Zacks Rank #2 (Buy). Investors can also look forward to a forthcoming list of top stock picks, with Zacks naming its top 10 stocks for 2026, a group that historically has outperformed the market. From 2012 through November 2025, the Zacks Top 10 Stocks gained 2,530.8%, significantly outpacing the S&P 500’s 570.3% return.
As Zacks Investment Research prepares to unveil its picks on January 5, investors are encouraged to stay informed about potential opportunities in the AI sector, which continues to evolve rapidly and shape the future of technology.
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