2 No-Brainer Artificial Intelligence (AI) Stocks (not Named Nvidia) to Buy Right Now

The AI bull market is here. Stocks are back at all-time highs, thanks largely to a new boom in artificial intelligence (AI).

The launch of ChatGPT has set off a race to be a leader in what top CEOs and major investors think will be the next transformative technology, generative AI. Nvidia, which sells the graphics processing unit (GPU) components that are the backbone of the advanced computing systems required for AI, has been the biggest winner so far. However, there are several other stocks primed to be winners as well. Let’s take a closer look at two of them.

Image source: Getty Images.

1. Micron Technologies

Micron Technologies (NASDAQ: MU) is a leader in memory chips. Historically, its business has been highly cyclical, fluctuating from boom times to busts as the semiconductor industry tends to be sensitive to supply gluts and demand shifts. Just a year ago, the company was operating at a wide loss as coming out of the pandemic, the slowdown in demand for PCs and tablets crushed prices for memory chips.

However, Micron is now emerging as a beneficiary of the AI boom as memory chips play a key role in AI servers. As Micron management explained on a recent earnings call, AI server demand is driving growth in high-bandwidth memory, which tightened the supply for the DRAM and NAND chips that Micron specializes in.

Because of that trend, the company expects DRAM and NAND prices to increase through calendar 2024. It now expects record revenue and “much-improved profitability” in fiscal 2025.

CEO Sanjay Mehrotra also said, “We are in the very early innings of a multiyear growth phase driven by AI as this disruptive technology will transform every aspect of business and society.” Micron’s memory and storage components are valuable in both training and inference functions for AI algorithms, making Micron a likely winner in AI.

If the company can generate record revenue in fiscal 2025, it would top the $30.7 billion in revenue it made in fiscal 2022. At that level, Micron would trade at a price-to-sales ratio of around 4, which is an attractive valuation, compared to other…

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