2 Best AI Stocks Up 100%+ in 2025 and Still a Buy for 2026

Core Insights - The AI boom has significantly benefited Micron Technology, Inc. and Palantir Technologies Inc., with their shares increasing by 195.3% and 145.5% respectively this year [2] Micron Technology, Inc. - Micron's high-bandwidth memory (HBM) chips are in high demand due to tight supply and the expansion of AI infrastructure, leading to first-quarter fiscal 2026 revenues of $13.64 billion, a 56.8% year-over-year increase [3][9] - The cloud memory business segment reported sales of $5.28 billion for the quarter, reflecting a 99.5% year-over-year growth [4] - Micron's non-GAAP net income reached $5.48 billion, translating to diluted earnings per share (EPS) of $4.78 [4] - For fiscal second-quarter 2026, Micron projects revenues between $18.3 billion and $19.1 billion, with diluted EPS expected between $8.22 and $8.62 [5] - The company generated a record free cash flow of $3.9 billion in the first quarter of fiscal 2026, providing financial strength for future growth initiatives [5] - Analysts forecast a solid earnings growth of 23.9% for Micron next year, with an average short-term price target of $252.44, indicating an 11.9% increase from the last closing price of $225.52 [6] Palantir Technologies Inc. - Palantir's revenues for the third quarter reached $1.18 billion, marking a 63% increase year-over-year and an 18% increase quarter-over-quarter [10] - The U.S. commercial segment generated revenues of $397 million, up 121% year-over-year and 29% sequentially, while government revenues were $486 million, up 52% year-over-year and 14% quarter-over-quarter [10] - The growth in U.S. commercial clients and government contracts creates significant barriers to entry, enhancing Palantir's market position [11] - The adoption of Palantir's Artificial Intelligence Platform (AIP) is expected to drive future profitability [11] - Palantir is projected to achieve earnings growth of 42.5% next year, with an average short-term price target of $192.67, an 8.7% increase from the last closing price of $177.29 [12]