These 3 stocks are appealing under-the-radar AI plays, UBS says

Core Insights - The AI boom is benefiting the overall economy and investor portfolios, but popular stocks appear expensive [1] - UBS managing director Tim Arcuri identifies opportunities in smaller AI stocks that have recently gained traction [2] Company Insights - Micron, a memory storage device manufacturer, is expected to experience growth despite a weak chip demand forecast [3][4] - Lam Research, a semiconductor equipment producer, has seen a strong rally in share price and is viewed as a beneficiary of a weaker US dollar in 2025 [4] - Teradyne, an automated test equipment maker, is also highlighted as a promising stock within the AI boom [6] Market Dynamics - There is a significant increase in demand for computing power driven by AI hyperscalers, which will necessitate substantial investments in memory and computing capacity [5] - The market perception of Micron is anticipated to shift as it moves towards a more stable business model, distancing itself from historical cyclicality [4]