3 AI Stocks Poised to Surge on the January Effect

Core Insights - Recent declines in U.S. stocks are concerning as they contradict the historical Santa Claus rally, yet major indexes posted solid gains in 2025 despite an April sell-off due to tariff declarations by President Trump [2] - The "January Effect" is expected to boost stock prices as investors reinvest year-end bonuses and engage in tax-loss harvesting, leading to renewed buying in the markets [3] Company Insights NVIDIA - NVIDIA is positioned for strong growth driven by demand for AI hardware and easing U.S.-China trade tensions, with projected fiscal fourth-quarter 2026 revenues around $65 billion [5][7] - The expected earnings growth rate for NVIDIA is 55.9%, with a Zacks Consensus Estimate for earnings per share (EPS) at $4.66, reflecting a 12% year-over-year increase [8] Micron Technology - Micron's high-bandwidth memory (HBM) chips are in continuous demand, expected to drive growth in fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion [11][12] - The projected earnings growth rate for Micron is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [13] Palantir Technologies - Palantir is set for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients, projecting total revenues for 2025 between $4.396 billion and $4.400 billion [15][16] - The expected earnings growth rate for Palantir is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [17]