MU, NVDA, PLTR, AMD: Is the AI Stock Rally Just Getting Started?
Tech investors are buzzing—again. After a turbulent 18 months, AI stocks look ready to roar back. Here's why.
Nvidia's chips still dominate. AMD's catching up fast. Micron's memory tech fuels the entire machine learning pipeline. And Palantir? They're the shadowy data-crunching backbone governments and corporations can't quit.
Wall Street's latest love affair with AI might actually have legs this time. Or maybe analysts just needed something to hype after crypto crashed and the metaverse flopped. Either way, the algorithms are hungry.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Micron, AMD, and Palantir Lead Sector Gains
The upbeat tone spread quickly across chip stocks. Micron Technology (MU) ROSE more than 6% on signs that memory prices are improving, helped by tighter supply and steady demand for high-bandwidth memory (HBM). Advanced Micro Devices (AMD) gained over 4% as traders bet that strong AI demand could lift sales of its new MI300 chips.
Other AI-related names also joined the rally. Palantir Technologies (PLTR), Western Digital (WDC), and Seagate Technology (STX) all traded higher, driven by growing confidence in AI spending and data demand.
Focus Turns to Nvidia’s Upcoming Earnings Now
Investors are now watching closely as Nvidia prepares to report its third quarter of Fiscal 2026 next week. Wall Street projects earnings per share (EPS) of $1.25, up 54% year-over-year, with revenue expected to grow 56% to $54.6 billion.
Analysts expect another strong quarter driven by high demand for Blackwell and H100 chips used in AI servers. Wedbush analyst Dan Ives called last week’s pullback in tech stocks a “short-lived dip” and said Nvidia’s results could be a key test for the AI market. He believes steady AI spending will keep chip demand strong through 2025.
Huang’s recent comments from Taiwan also helped ease worries about production delays, showing that Nvidia remains confident in meeting demand from its cloud and AI customers.
Which Stock Is the Best Buy?
Turning to Wall Street, among the stocks mentioned above, Nvidia offers the highest upside at about 19%, with analysts maintaining a Strong Buy rating. AMD follows with roughly 14% upside and a Moderate Buy consensus rating.
Micron and Western Digital also hold Strong Buy ratings, while Seagate is rated Moderate Buy. Meanwhile, Palantir is the only stock with a Hold rating, as analysts stay cautious after its recent rally.
