An updated edition of the March 11, 2026, article .
Artificial Intelligence (AI) allows machines to analyze large volumes of data, identify patterns, and make independent decisions. It is transforming sectors like robotics, healthcare, finance, cybersecurity, and e-commerce by simulating human intelligence through technologies such as machine learning, deep learning and natural language processing. Advances in multimodal learning and enhanced context awareness are accelerating AI adoption. From chatbots and medical diagnosis to fraud detection and autonomous systems, AI has become a key driver of organizational agility, while significantly improving productivity and operational efficiency.
Per Gartner, global AI spending is expected to hit $2.52 trillion in 2026, indicating 44% growth over 2025. According to the Boston Consulting Group, CEOs plan to spend 1.7% of revenues in 2026. U.S. tech giants, including Microsoft MSFT, Alphabet GOOGL and Meta Platforms, have been at the forefront of bringing remarkable advances to AI technology, well supported by powerful AI chips and custom accelerators from NVIDIA NVDA, AMD, Broadcom AVGO and Micron Technology MU. The deals between OpenAI and AMD, as well as OpenAI and NVIDIA, reflect growing demand for AI chips. Alphabet’s Tensor Processing Units are also gaining traction. Broadcom’s extended partnership with Meta Platforms will see the companies co-develop multiple generations of META’s custom AI chips.
AI models continue to evolve thanks to strong spending on developing large language models (LLMs). Microsoft-backed OpenAI introduced GPT-5 chat, which represents a major improvement in natural language understanding and generation capabilities. Expanding its generative AI footprint, Alphabet introduced Nano Banana Pro, which is built on Gemini 3 Pro. Alphabet is infusing AI into its search business in order to attract more users, while Meta Platforms’ focus on integrating AI into its platforms is driving user engagement. Both initiatives are driving ad revenue growth.
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Micron Technology is benefiting from surging demand for HBM and robust DRAM pricing recovery. DRAM revenues accounted for more than 79% of Micron’s total sales in the second quarter of fiscal 2026. The pricing benefits are likely to be driven by rising AI server demand, causing a scarcity in the availability of cutting-edge DRAM supplies. This will support Micron’s margin expansion and profitability. This Zacks Rank #1 (Strong Buy) company is capitalizing on the AI boom with its HBM3E solutions, which are increasingly being adopted by major hyperscalers and enterprise customers. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron is poised to be the key beneficiary of surging AI-related infrastructure spending, as companies continue to build out GPU clusters and AI data centers that require advanced memory solutions. AI PCs are an important part of Micron’s growth plan. An expanding partner base that includes the likes of NVIDIA, AMD and Intel, is enabling Micron to capture a larger share of the AI infrastructure market. Deepening relationship with major cloud and enterprise customers ensures stable revenue streams and reduces the risk of pricing volatility.
Broadcom’s prospects benefit from rising AI revenues. Semiconductor business benefits from strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues, while AVGO’s revenues from XPUs jumped 140% year over year.
Broadcom’s AI momentum is expected to continue, thanks to a clientele that includes Google, Meta Platforms and Anthropic. This Zacks Rank #1 company continues to gain market share in AI networking, driven by the first-to-market Tomahawk 6 switch at 100 terabit per second, as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 delivers exceptional flexibility with support for 100G and 200G SerDes. It provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million XPUs.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues.
NVIDIA has been a key beneficiary of the AI boom, which has driven strong demand for its graphics processing units (GPUs) and computing solutions. This Zacks Rank #2 (Buy) company’s data center business is benefiting from higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications. The demand for NVIDIA’s Blackwell GPU computing platforms has been a key catalyst as cloud providers and enterprises scale their AI infrastructure.
The Blackwell architecture has been at the core of revenue growth for a while now, and NVIDIA is planning to release another architecture, Rubin. The company has already unveiled six new chips under this architecture, comprising the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9, SuperNIC, BlueField-4 DPUs and Spectrum-6 Ethernet Switch. NVIDIA’s leadership in AI chip development positions it well for sustained revenue growth in the data center segment. NVIDIA’s outlook for the first quarter of fiscal 2027 remains upbeat. The company expects first-quarter revenues to increase 77% year over year to $78 billion, reflecting continued momentum in AI-driven demand.
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