AI chip stocks Nvidia, Micron, SanDisk seen rising 30%+ through 2026

What happened

An investment analyst has identified three AI-related semiconductor stocks—Nvidia, Micron Technology, and SanDisk—that are predicted to rise 30% or more before the end of 2026. Nvidia is valued at 25 times forward earnings, well below its historical range of over 35 times in the second half of the year; Wall Street analysts project 43% revenue growth for Nvidia in 2027 and earnings per share rising from $9.00 to $12.89. Micron and SanDisk, both memory chip producers, have seen two-thirds of SanDisk's 372% year-over-year growth come from price increases driven by AI-driven demand.

Why it matters

Memory chip production capacity is now the bottleneck limiting AI infrastructure expansion, and supply shortages have driven chip prices sharply higher. Micron has signaled the memory chip market will remain tight until at least 2028 as new production capacity comes online. Data center capital expenditures are projected to jump from $650 billion in 2026 to over $1 trillion in 2027, benefiting all three companies and likely sustaining demand pressure for the next year and a half.

What to watch

The release of Nvidia's Vera Rubin chip architecture at year-end and 2027 capital expenditure guidance from major cloud providers (hyperscalers), which have already begun raising spending targets in response to rising memory chip costs. SanDisk and Micron have already rallied in recent weeks, suggesting the market may be repricing these stocks.