These 2 Artificial Intelligence (AI) Stocks Could Soar by 66% and 46%, According to Wall Street

Micron (MU) reported fiscal Q3’26 revenue up 346% YoY to $41.46B and adjusted EPS up 1,215% YoY to $25.11, while arguing a memory-chip shortage may persist until at least 2028. Broadcom (AVGO) posted Q2’26 revenue up 48% YoY to $22.2B and adjusted EPS up 54% YoY to $2.44, with management projecting >200% YoY revenue growth in its AI chip business in Q3. Street targets imply sizable upside—Micron’s $1,515.11 target (~66%) and Broadcom’s $526.30 target (~46%)—supported by ongoing hyperscaler AI capex, though cyclicality risk for memory is flagged.

Analysis

This is more a relative-value setup than a simple bullish semis call. MU still looks like a cyclical earnings burst wrapped in a structural AI narrative: if memory tightness persists, upside can continue for 1-2 quarters, but the multiple is vulnerable to any sign of incremental capacity, especially in HBM, because the market will de-rate the stock before reported growth actually rolls over.

AVGO has the cleaner durability profile. Custom silicon adoption shifts AI capex toward co-designed, sticky platforms where switching costs and software/hardware integration matter more than raw compute throughput; that is supportive for AVGO and a modest headwind for NVDA if hyperscalers keep reallocating spend from general-purpose accelerators to ASICs. The second-order winner is the advanced packaging/foundry chain, while the second-order loser is any vendor dependent on broad-based GPU attach rates.

The contrarian miss is that consensus may be overconfident in both forward estimates. For MU, mean reversion in memory pricing can hit the multiple months before revenue slows; for AVGO, the risk is customer concentration, where GOOG/META use custom silicon as leverage to compress supplier economics rather than just expand the TAM. Time horizon matters: MU is a 1-3 month event-driven trade around supply commentary, while AVGO is a 6-18 month compounding story unless AI capex rolls over.

Key Decisions for Investors

• Long AVGO vs short NVDA for 3-6 months: express the view that incremental AI spend is migrating toward custom ASICs; thesis fails if NVDA re-accelerates on inference demand or if AVGO AI growth decelerates meaningfully on the next guide.
• Do not chase MU here; prefer a pullback entry or a 6-9 month call spread only after checking HBM lead times and inventory days. Falsifier: any evidence of capacity additions or channel inventory normalization that flattens forward pricing.
• If already long MU, trim into strength and hold a smaller core position for the next earnings cycle. The risk/reward is favorable only while scarcity is explicit; once pricing power becomes consensus, the multiple is the fragile part of the trade.
• Watch GOOG and META capex commentary as the key catalyst pair for AVGO: any upward revision to AI infrastructure budgets is a direct positive, while a slowdown would hit AVGO before it shows up in reported revenue.