Meet the monster stocks that continue to beat the market

Over the past three years, the stock market has entered a profitable bull run thanks in large part to the boom in artificial intelligence (AI). For most of the AI ​​revolution, megacap technology stocks are the primary beneficiaries.

In particular, semiconductor storage viz Nvidia (NASDAQ: NVDA ), Broadcom (NASDAQ: AVGO )and Taiwan Semiconductor Manufacturing (NYSE: TSM ) have joined the exclusive trillion-dollar club because of their respective roles in fueling demand for productive AI.

Will AI create the world’s first trillionaire? Our team just published a report on a little-known company, called “Essential Dependency” that provides critical technology to both Nvidia and Intel. Continue »

In the past year, however, new AI chip stocks have entered the spotlight: Micron Technology (NASDAQ: MU )whose 304% return over the last 12 months completely outpaced the returns of its peers as well as the broader returns. S&P 500 and Nasdaq-100 Indicators

Let’s break down what’s fueling Micron’s stock rally and assess whether now is a good time for investors to act.

Micron is a leader in specialty semiconductors, designing advanced memory and storage solutions.

The company produces dynamic random access memory (DRAM) for high-speed data processing in consumer electronic devices such as smartphones and laptops, as well as business solutions such as AI servers.

In addition, Micron develops NAND flash memory, which complements the DRAM business, as durable, power-efficient memory is crucial for AI data centers and emerging Internet of Things (IoT) applications.

Micron’s high-bandwidth memory (HBM) solutions are key enablers of graphics processing units and AI accelerators developed by Nvidia and Advanced Micro Devices. The company’s business path is currently fueled by AI-driven demand from hyperscalers.

In 2026, Amazon, the alphabet, Microsoftand Meta platforms It predicts they will spend more than $600 billion on capital expenditures — most of which will be allocated to more data center construction and chip procurement.

Given that Micron has already sold its HBM solutions for the year, it’s safe to say that the company is emerging as a central figure in the AI ​​infrastructure era as the big tech doubles down on advanced training and reflection requirements for its next-generation models.

While Micron’s shares have been parabolic, the percentage gains in the stock price don’t reveal much about the company’s true value profile.

Despite the strong outlook for the top and bottom lines — with analysts expecting Micron’s revenue to quadruple this year — the company still trades at a median forward price-to-earnings (P/E) multiple of 11. For reference, other category-leading AI chip stocks have witnessed high P/I levels above 4 during the above period. revolution

In my eyes, Micron’s rally is just beginning, as investors have yet to fully price in the importance of the AI ​​memory supercycle. The company’s suite of HBM solutions is well positioned to accelerate AI infrastructure investments over the next few years.

Against this backdrop, I view Micron stock as a no-brainer buy, as a significant value expansion appears on the horizon.

Before you buy stock in Micron Technology, consider this:

of the Motley Fool Stock Advisor The analyst team identified only what they believed 10 best stocks For investors to buy now… and Micron Technologies was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix This list was created on December 17, 2004 … If you invested $1,000 at the time of our recommendation, You will have $514,000or when Nvidia This list was created on April 15, 2005 … If you invested $1,000 at the time of our recommendation, You will have $1,105,029!*

Now, this is significant Stock consultant The total average return is 930% – Outperformed the market by 187% for the S&P 500. Don’t miss the latest Top 10 list, available with Stock consultantand join an investment community created by individual investors for individual investors.

View 10 Stocks »

*Stock Advisor returns on March 15, 2026.

Adam Spataku has held positions at Alphabet, Amazon, MetaPlatforms, Microsoft, and Nvidia. The Motley Fool owns and offers positions in Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Micron Technologies, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. Motley Fool has a disclosure policy.

Meet the monster stocks that continue to beat the market was originally published by The Motley Fool