Yahoo Finance·2026-01-20 21:10Group 1: Market Overview - The U.S equity market entered 2026 with strong momentum, largely driven by gains in AI-related stocks during 2024 and 2025 [1] - The global AI market is projected to grow from $390.9 billion in 2025 to $3.5 trillion by 2033, indicating that AI adoption is still in its early stages [2] Group 2: Micron Technology - Micron Technology reported a remarkable 56% year-over-year revenue growth, reaching $13.6 billion in the first quarter of fiscal 2026 [4] - Demand for Micron's DRAM, NAND, and high-bandwidth memory offerings significantly exceeds supply, leading to stronger pricing power and expanding margins [5] - Micron's HBM output for 2026 is fully allocated, providing strong revenue and pricing certainty due to agreed volumes and pricing with customers [5] - The current memory cycle is driven by a multi-year AI infrastructure buildout, with hyperscaler AI companies expected to spend nearly $527 billion on AI-related capital expenditures in 2026 [6] - Micron reported nearly 30% free cash flow margin and reduced debt by $2.7 billion in the first quarter, with its stock trading at 8.6 times forward earnings, indicating a modest valuation [7] Group 3: Qualcomm - Qualcomm entered 2026 as a diversified AI semiconductor player, reporting non-GAAP revenue of $44 billion and free cash flow of $12.8 billion in fiscal 2025 [10] - The company maintains solid operating margins and has the financial flexibility to invest and expand in multiple AI-driven markets [10] - Both Micron and Qualcomm are positioned to potentially become market leaders in the AI sector, currently trading at reasonable valuations [9]