Got $1,000 to Invest? Here Are 2 Magnificent Artificial Intelligence (AI) Stocks Down 12% to 30% to Buy Hand Over Fist Before July Is Over

The more important signal is not that AI spend is still rising, but that the scarcity is moving up the stack: memory and packaging remain the rate-limiting steps, so pricing power should persist longer in MU than in the broader semiconductor complex. That usually shows up first as gross-margin surprises and inventory tightness, then as multiple expansion for the names with the cleanest supply discipline. On the vendor side, NVDA is still the clearest toll collector, but the next leg of upside is less about unit growth and more about sustained order visibility translating into higher estimate certainty.

The market may be underweight the second-order winners: AMAT, LRCX, and KLAC can benefit if memory and HBM capacity stays constrained because every incremental fab dollar tends to pull through equipment demand before it pulls through end-product revenue. By contrast, hyperscalers such as MSFT, AMZN, GOOGL, and META face a longer lag where capex rises before monetization does, which can pressure free-cash-flow narratives even if AI demand remains intact.

The contrarian risk is that this is already a crowded "AI capex accelerates" trade. If DRAM/HBM supply normalizes faster than expected or a hyperscaler trims 2027 budgets, MU will de-rate faster than its earnings can compound, because the stock is already discounting several years of tightness. For NVDA, the key falsifier is not demand disappearing; it is order conversion slipping by one or two quarters, which would be enough to flatten the multiple even if the long-term story remains intact.