Sandisk (NASDAQ: SNDK) was one of the market's hottest stocks over the past year, and its incredible run became even more impressive after the stock surged following its fourth-quarter earnings report. The semiconductor stock is already up more than 166% in 2026 alone, as of this writing. Sandisk is one of the world's leading makers of NAND (flash) memory. NAND manufacturers dramatically reduced production a few years ago after a price crash, as gross margins turned negative due to oversupply. However, dem ...

Roughly one month into 2026, it's already looking like artificial intelligence (AI) stocks are poised for even further gains. While cloud hyperscalers like Microsoft, Amazon, and Alphabet remain near-unanimous buys in the eyes of Wall Street, some smart analysts are picking another stock to be one of the biggest winners this year. Joseph Moore of Morgan Stanley and Beth Kindig of the I/O Fund both listed Micron Technology (NASDAQ: MU) at the top of their AI chip stock rankings for 2026. Let's dig into wh ...

Core Insights - Micron Technology is becoming a crucial player in the AI semiconductor market, particularly in the memory chip segment that supports Nvidia's GPUs [1][2] - The demand for DRAM and HBM memory chips significantly exceeds supply, benefiting Micron in both the short and long term [9] Company Overview - Micron Technology specializes in memory chips, including DRAM and HBM, which are essential for AI computations due to their high data retrieval speeds [7] - The company has a market capitalization of $450 billion and a gross margin of 45.53% [8] Market Dynamics - Only three companies, including Micron, dominate the global supply of DRAM and HBM, leading to limited supply and massive demand [9] - Micron has already committed its entire supply of HBM for the 2026 calendar year, indicating strong future revenue prospects [10] Expansion Plans - Micron is investing over $200 billion to enhance its U.S. manufacturing capacity, including expansions in Virginia and new facilities in Idaho and New York [12] - The company has also signed a letter of intent to acquire a semiconductor fabrication site in Taiwan for $1.8 billion [12] Valuation and Investment Outlook - Despite a significant stock price increase in 2025, Micron's valuation remains reasonable at 5.5 times forward sales and 11 times forward earnings [13] - Micron is positioned as a long-term player in the AI sector, making it a solid investment opportunity for an AI-driven future [13]

Core Viewpoint - Applied Materials, Inc. (AMAT) is recognized as a leading investment opportunity in the semiconductor sector, particularly due to its strong positioning in the DRAM and foundry segments, driven by increasing demand from artificial intelligence applications [1][2]. Group 1: Company Overview - Applied Materials, Inc. is a leader in materials engineering solutions, providing manufacturing equipment, services, and software to the semiconductor, display, and related industries [5]. Group 2: Market Position and Growth Potential - TD Cowen has raised its price target for AMAT to $315.00 from $260.00 while maintaining a "Buy" rating, highlighting the company's strong growth prospects [1]. - The firm identifies AMAT as their "Top 2026 Idea," driven by structural growth in the DRAM and foundry segments, with approximately 50% of its semiconductor portfolio exposed to these areas [2]. - Non-China DRAM equipment spending is projected to grow by 17% in calendar year 2026, with potential upside to 20%, representing about 30% of AMAT's semiconductor systems revenue [3]. Group 3: Segment Analysis - The DRAM segment is expected to see significant growth, with historical data indicating that when DRAM gross margins were high, industry WFE (Wafer Fabrication Equipment) grew substantially before a correction [4]. - The leading-edge foundry segment is modeled to grow by 15% in calendar year 2026, particularly in the second half, supported by full utilization of current capacity and new cleanroom projects from major players like TSMC and Samsung [4].