ZACKS·2026-01-05 11:15Core Viewpoint - The article discusses the potential for growth in three AI-related stocks—NVIDIA Corp., Micron Technology, Inc., and Palantir Technologies Inc.—due to the "January Effect" and ongoing demand in the technology sector driven by artificial intelligence [2][4]. Group 1: NVIDIA Corp. - NVIDIA is expected to experience strong growth driven by demand for its AI hardware, particularly its next-generation Blackwell chips and cloud GPUs [5]. - The easing of U.S.-China trade tensions, highlighted by the approval of H200 AI chip shipments to select customers in China, is seen as a positive development for NVIDIA [6]. - NVIDIA projects fiscal fourth-quarter 2026 revenues at approximately $65 billion, with a margin of plus or minus 2% [7]. - The company's expected earnings growth rate for the current year is 55.9%, with a Zacks Consensus Estimate for EPS at $4.66, reflecting a 12% year-over-year increase [8]. Group 2: Micron Technology, Inc. - Micron's high-bandwidth memory (HBM) chips are in continuous demand, supporting growth in 2025 and expected to continue this year [9]. - The company anticipates fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion, mirroring revenue growth seen during the dot-com bubble [10]. - Micron's projected earnings growth rate for the current year is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [11]. Group 3: Palantir Technologies Inc. - Palantir is positioned for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients [12]. - The company expects total revenues for 2025 to be between $4.396 billion and $4.400 billion, indicating growth in both client segments [13]. - Palantir's expected earnings growth rate for the current year is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [14].