The Motley Fool·2026-02-27 10:31Industry Overview - Artificial intelligence (AI) infrastructure spending is expected to increase significantly, with the five largest hyperscalers and cloud computing companies in the U.S. projected to spend between $660 billion and $690 billion in 2026, up from $380 billion last year [1][2] - The demand for AI infrastructure is driven by both established companies and new entrants in the AI space, indicating a robust growth trajectory for the sector [2] Company Analysis: Micron Technology - Micron Technology's dynamic random-access memory (DRAM) chips, particularly high-bandwidth memory (HBM), are essential for AI data centers, enabling faster data processing for AI models [5][8] - The company has noted that AI servers require six times the amount of DRAM compared to standard servers, leading to a significant increase in demand and a shortage of memory chips [7][9] - Analysts predict a substantial increase in Micron's earnings, with expectations of more than a fivefold increase in earnings per share over two fiscal years, making it an attractive investment opportunity [11] - Micron's current trading multiples are favorable compared to the tech-focused Nasdaq-100 index, suggesting potential for price appreciation [12] Company Analysis: Jabil - Jabil is positioning itself as a key player in AI infrastructure, providing manufacturing and engineering services for AI server racks and related technologies [13][15] - The company plans to invest $500 million to expand its AI data center infrastructure manufacturing capacity, reflecting its commitment to capturing the growing demand in this sector [15] - Jabil is forecasting a 35% increase in AI revenue for fiscal 2026, indicating strong growth potential, and has raised its operating margin guidance due to improved contributions from its AI business [16] - The stock is currently trading at a discount compared to the Nasdaq-100's earnings multiple, suggesting it may still have significant upside potential [18][19]