ZACKS·2025-12-12 21:01Core Insights - The rapid growth of artificial intelligence (AI) is expected to continue into 2026, driving demand for AI hardware, software, and cloud infrastructure globally. Companies like Micron Technology, Palantir Technologies, and NVIDIA are well-positioned to benefit from this trend, making them attractive investment opportunities for the upcoming year [1] Micron Technology - Micron is the only U.S.-based memory manufacturer, providing a competitive edge in the AI market. The company reported fiscal fourth-quarter revenues of $11.32 billion, up from $7.75 billion year-over-year, and full fiscal year revenues of $37.38 billion, an increase from $25.11 billion [2][3] - Due to strong demand for high-bandwidth memory (HBM) chips, Micron raised its fiscal first-quarter revenue outlook to $12.5 billion. The company also reported a net income of $8.54 billion for fiscal 2025, with an estimated earnings growth rate of 24.4% for the next fiscal year [3] Palantir Technologies - Palantir's Artificial Intelligence Platform (AIP) is seeing increased adoption among U.S. commercial and government clients, which is expected to drive revenue growth. The company raised its fourth-quarter sales outlook to between $1.327 billion and $1.331 billion, with full fiscal year revenue guidance increased to between $4.396 billion and $4.400 billion [4][5] - In the third quarter, Palantir's revenues reached $1.18 billion, a 63% increase year-over-year and an 18% increase sequentially. The U.S. commercial segment saw revenues of $397 million, up 121% year-over-year, while government revenues were $486 million, up 52% from the previous year [6][7] NVIDIA Corporation - NVIDIA's competitive advantage in the AI hardware market, along with consistent demand for its CUDA software platform, is expected to drive growth. The company received approval to ship H200 AI chips to "approved customers" in China, which is likely to enhance growth prospects [8] - Global data center capital expenditures are projected to reach $3 trillion to $4 trillion annually by 2030, positioning NVIDIA favorably for future sales [9] - NVIDIA's fiscal third-quarter 2026 revenues reached $57 billion, a 62% increase year-over-year and a 22% increase quarter-over-quarter. The company anticipates fiscal fourth-quarter 2026 revenues to be around $65 billion, with an expected earnings growth rate of 52.4% for the next year [11][12]