Prediction: 2 Stocks That Will Outpace ASML by 2027

Forget chasing yesterday's winners—the real momentum is shifting toward emerging tech titans poised to dominate the semiconductor space.

Why ASML's Crown Is Slipping

While ASML rides its lithography monopoly, next-gen chip technologies are already bypassing traditional pathways. New architectures demand new tools—and that opens doors for disruptors.

The Challengers Rising

Two companies are leveraging AI-driven design and advanced packaging to cut production cycles by 40%. Their scalable models don't just compete—they redefine the value chain.

Wall Street's Blind Spot

Analysts remain obsessed with current market caps while underestimating exponential growth curves. Typical finance shortsightedness—focusing on quarters when the real game is decades.

Bottom Line: Bet on innovation, not incumbency. The chip landscape is rewriting itself, and the new leaders won't play by old rules.

Image source: Getty Images.

If ASML matches analysts' estimates and still trades at 29 times its current year's earnings, its stock price could rise 20% and drive its market cap to $320 billion by 2027. That WOULD be a respectable gain, but two less valuable chip stocks --(AMD -0.82%) and(MU 5.51%) -- might eclipse its market cap within the next two years.

1. AMD

AMD is the world's second-largest producer of x86 CPUs and discrete GPUs. It trails behind(NASDAQ: INTC) in x86 CPUs andin discrete GPUs, but it has still grown rapidly over the past decade.

As a fabless chipmaker that outsources its production to TSMC, AMD wasn't plagued by the production issues and delays that affected Intel's first-party foundries. It also kept pace with Nvidia by selling cheaper gaming and data center GPUs, and it carved out a niche by selling accelerated processing units (APUs), which merge together CPUs and GPUs onto a single chip for PCs and gaming consoles.

From 2024 to 2027, analysts expect AMD's revenue and adjusted EPS to grow at a CAGR of 22% and 31%, respectively. That growth should be driven by its continued market share gains against Intel in the x86 CPU market, its brisk sales of cheaper AI-oriented data center GPUs, and the stabilization of the gaming GPU market.

AMD currently has a market cap of $257 billion and trades at 41 times this year's adjusted earnings. If it maintains that multiple and matches Wall Street's earnings estimates, its stock price could rise 90% over the next two years and boost its market cap to nearly $490 billion.

2. Micron

Micron is one of the world's top producers of DRAM and NAND memory chips. It doesn't dominate either market, but it generally manufactures denser and more power-efficient chips than its larger South Korean rivals likeand SK Hynix. It's an integrated device manufacturer (IDM) that manufactures its chips at its own first-party foundries.

Micron's growth ebbs and flows with the memory market's cyclical boom-and-bust cycles. Its last bust occurred in 2023 as the PC market's post-pandemic growth spurt ended, the 5G upgrade cycle cooled off, and data centers prioritized their purchases of GPUs over memory chips.

But from fiscal 2024 (which ended last August) to fiscal 2027, analysts expect its revenue and adjusted EPS to grow at a CAGR of 28% and 109%, respectively. That growth cycle should be driven by the stabilization of the PC market, rising smartphone sales, and the purchases of more solid-state drives (SSDs) and high-bandwidth memory (HBM) chips at data centers to support the latest generative AI applications.

However, Micron's stock still trades at a modest 21 times this year's earnings, and it has a market cap of $176 billion. If it maintains that multiple and matches analysts' estimates, its stock price could rally 46% and drive its market cap to nearly $260 billion within the next two years. But if it trades at a more generous 30 times earnings, its stock price could surge 110% and propel its market cap to $370 billion. So if you think Micron's next growth cycle is just getting started, it could be a great time to buy its stock.