Shares of Micron Technology, Inc. MU have delivered astounding gains over the past year, banking on strong demand for artificial intelligence (AI) infrastructure. The stock soared 657.5% during this period, which helped push Micron’s market capitalization to $1 trillion, a milestone that very few semiconductor companies have achieved.
Although Micron’s shares recently witnessed a sharp sell-off amid a broader market correction, its long-term growth outlook remains convincing, fueled by an incessant demand for its cutting-edge high-bandwidth memory chips as hyperscalers continue to increase their AI infrastructure spending.
Micron has now transitioned from a cyclical semiconductor stock to a critical supplier in the AI infrastructure ecosystem. However, investors willing to diversify their AI semiconductor holdings while capturing similar long-term growth trends should keep AI networking chipmaker Marvell Technology, Inc. MRVL and AI memory stock Sandisk Corporation SNDK on their radar. Let us thus look in detail at the key catalysts that could drive significant upside in these stocks –
Marvell Strengthens Role in AI Infrastructure Growth
Marvell recently increased its revenue growth outlook for 2027 and 2028, showcasing strong customer demand for its products and an improved revenue visibility. At the midpoint of its guidance, Marvell expects revenues of about $2.7 billion for the second quarter of fiscal 2027, representing 35% year-over-year growth, according to investor.marvell.com.
Marvell’s first-quarter fiscal 2027 revenues of $2.418 billion already exceeded expectations, driven mostly by strong demand in AI-related infrastructure. The revenue expansion is being driven by its growing presence in AI networking. The company’s networking and connectivity chips power data centers, enabling thousands of interconnected processors to exchange data rapidly and efficiently. This is why NVIDIA Corporation’s NVDA CEO, Jensen Huang, sees Marvell as a “trillion-dollar company” in the making.
In the first quarter of fiscal 2027, Marvell generated a record $638.8 million in operating cash flow, strengthening its ability to invest more in research and development and support further growth. As a result, the company’s expected earnings growth rate for the current and next fiscal year are 41.2% and 51.6%, respectively. Its shares have already soared 256.7% over the past year.
Sandisk Sees Strong Growth Driven by AI Data Center Demand
Sandisk is expected to gain from strong demand for its memory products in AI-powered data centers supported by current supply constraints. Its robust pricing power across its product portfolio is likely to further strengthen its top-line performance.
The company projects $7.75 billion to $8.25 billion in revenues for the fiscal fourth quarter of 2026, according to investor.sandisk.com. The company’s focus on high-value customers in the expanding data center market helped Sandisk report revenues of $5.95 billion in the fiscal third quarter, up 97% sequentially and above its own guidance.
Sandisk further projects non-GAAP earnings per share of $30 to $33 for the fiscal fourth quarter, up from $23.41 in the fiscal third quarter, indicating sustained sequential growth momentum. Moreover, Sandisk’s strategic New Business Model agreements are expected to strengthen customer retention and boost revenue growth and profitability. Consequently, the company’s likely earnings growth rate for the current and next fiscal year are 2096.7% and 177.3%, respectively. Its stock has already surged 3849.2% over the past year.
Sandisk currently has a Zacks Rank #1 (Strong Buy), while Marvell has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).