2 Tech Stocks That Could Go Parabolic

Group 1: Digital Adoption and Market Trends - Digital adoption is accelerating globally, particularly in cloud platforms and AI-driven services, leading to increased demand for companies providing digital infrastructure and innovations [1] - Spending on graphics processing units (GPUs) and custom AI accelerators is projected to reach approximately $2 trillion by 2028, significantly increasing from 15% of global computation infrastructure spending in 2025 to 50%-60% [6] Group 2: Nvidia - Nvidia expects revenues of $45 billion, plus or minus 2%, in Q2 of fiscal 2026, despite an estimated $8 billion headwind from halted H20 shipments to China [4] - The company anticipates GAAP gross margins of 71.8%, plus or minus 50 basis points, in Q2, approaching its mid-70% target by the end of fiscal 2026 [5] - Nvidia's Blackwell GPUs are ramping at the fastest pace in its history, with strong demand in sovereign AI infrastructure projects across the Middle East and Europe [7] - Nvidia is rumored to be developing a powerful AI chip for China, which could benefit from robust demand trends despite previous export restrictions [8] - The company's Omniverse platform and Nvidia AI Enterprise are gaining traction, helping to build a sticky customer base [9] - Nvidia trades at around 36 times forward earnings, a premium valuation justified by its strong market position and financial guidance [10] Group 3: Micron Technology - Micron Technology reported a 37% year-over-year revenue increase to $9.3 billion in Q3 of fiscal 2025, with adjusted earnings per share of $1.91, exceeding Wall Street expectations [11] - Sales to data centers more than doubled, driven by demand for high-bandwidth memory (HBM) and DRAM due to AI infrastructure growth [12] - Micron's free cash flow exceeded $1.9 billion, the highest quarterly performance in six years, reflecting strong product demand [12] - The company expects its global HBM market share to be nearly equal to its DRAM share of 20%-25% in the second half of 2025, with a target addressable market for HBM of nearly $35 billion in 2025 and over $100 billion by 2030 [15] - Micron is diversifying its product base with AI-optimized storage solutions and has announced a $200 billion investment plan for the U.S. [16] - Micron trades at 11.8 times forward earnings, below its historical average, indicating significant upside potential given its AI-driven growth [17]