NVIDIA\u2019s shares have declined 4.8% year to date, while Micron Technology, Inc. (MU Quick QuoteMU<\/a> – Free Report<\/a>) , which supplies DRAM and NAND memory critical for AI data centers, along with Applied Materials, Inc. (AMAT Quick QuoteAMAT<\/a> – Free Report<\/a>) , a key \u201cpick-and-shovel\u201d AI supplier, have climbed 28.3% and 35.6%, respectively. Both are well-positioned to build on this momentum and emerge as the next big winners. Here\u2019s why \u2013\u00a0\u00a0<\/p>\n HBM Demand Drives Micron With Upside of Up to 105%\u00a0<\/p>\n Micron\u2019s high-bandwidth memory (HBM) chips are witnessing strong demand due to their capability to handle huge workloads while improving power efficiency. As data center operators and hyperscalers continue to expand AI infrastructure, demand for HBM chips remains strong despite supply constraints. In reality, the demand-supply imbalance in HBM chips is expected to push prices higher, positioning Micron for growth over time.\u00a0<\/p>\n Consequently, Micron expects revenues of $33.5 billion for the third-quarter fiscal 2026, up from $23.86 billion in the second quarter of fiscal 2026, according to investors.micron.com<\/a>. Micron is projecting an exceptionally high gross margin of 81% for the third-quarter fiscal 2026, highlighting strong financial momentum and pricing power. As a result, the company\u2019s expected earnings growth rate for the current year is a whopping 603.9%.\u00a0<\/p>\n Brokers are also bullish on Micron\u2019s growth prospects. They estimate an average short-term price target for MU stock at $492.58, a 34.5% increase from the last closing price of $366.24. The highest target is $750, suggesting a potential upside of 104.8%.<\/p>\n Image Source: Zacks Investment Research<\/p>\n AI Chip Demand Drives Applied Materials With 43.5% Upside\u00a0\u00a0<\/p>\n Continuous rise in AI investments is boosting sales of Applied Materials\u2019 cutting-edge semiconductor equipment. Applied Materials\u2019 CEO stated that the company is dominating the market in high-performance, energy-efficient chip manufacturing equipment and is aiming for growth of over 20% this year. AI demand across logic, HBM, and advanced packaging has diversified Applied Materials\u2019 revenues and helped mitigate China-related risks.\u00a0<\/p>\n Applied Materials projects revenues of $7.65 billion for the second quarter of fiscal 2026, plus or minus $500 million, according to ir.appliedmaterials.com<\/a>. This follows revenues of $7.01 billion for the first quarter of fiscal 2026, highlighting sustained growth momentum. The company stayed profitable, registering a non-GAAP gross margin of 49.1% in the fiscal first quarter and $1.69 billion in operating cash to support growth initiatives.\u00a0<\/p>\n As a result, the company\u2019s projected earnings growth rate for the current year is a solid 17.8%. Brokers, too, are optimistic about Applied Materials\u2019 growth prospects. They forecast the average short-term price target for AMAT stock at $402.41, reflecting a 15.5% increase from the last closing price of $348.47. The highest target is $500, suggesting a potential upside of 43.5%.<\/p>\n Image Source: Zacks Investment Research<\/p>\n![\"Zacks](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/154316.jpg\"\/)
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