Forget the "Magnificent Seven": These 3 Hypergrowth Artificial Intelligence (AI) Stocks Are Just Getting Started
Written by Keithen Drury for The Motley Fool -> Micron and Sandisk are cashing in on the memory chip shortage. Nebius is thriving thanks to high demand for cloud computing capacity. A few years ago, a Wall Street analyst dubbed a group of megacap tech stocks that have led the
Micron and Sandisk are cashing in on the memory chip shortage.
Nebius is thriving thanks to high demand for cloud computing capacity.
A few years ago, a Wall Street analyst dubbed a group of megacap tech stocks that have led the market to new heights over the past five years the "Magnificent Seven" -- and the name stuck. Each is among the 10 largest companies in the world, and all can still make for solid investments. Other than Nvidia , most of them top out at about a 30% growth rate, which is impressive, but wouldn't be considered "hypergrowth." If you're looking for stocks that are doubling or even tripling their revenue year over year, you'll have to look beyond the Magnificent Seven.
Three hypergrowth stocks that look like strong picks right now are Micron (NASDAQ: MU) , Sandisk (NASDAQ: SNDK) , and Nebius (NASDAQ: NBIS) . They're all cashing in on the massive artificial intelligence (AI) build-out, and are on course to deliver even more growth in the coming years.
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Micron is a memory-chip maker that specializes in NAND and DRAM memory. Each of these distinct types is utilized in different varieties of computing products, with NAND memory largely going into solid-state drives (SSDs) and DRAM incorporated into computing units for fast memory access. Both types of memory are in short supply due to unprecedented demand from the AI infrastructure build-out, so the price of memory chips is skyrocketing. That is leading to huge revenue and earnings growth for Micron, which in turn has delivered impressive gains for investors.
Two quarters ago, Micron's revenue totaled $13.6 billion. Last quarter, that figure hit $23.9 billion. For its recently completed fiscal third quarter, management was guiding for $33.5 billion. That's an unreal growth trajectory, and if Micron continues along it, it will be a great investment to hold.
While Micron and its peers are building more production capacity, the memory chip shortage isn't expected to be resolved anytime soon, so there's room for its revenues to continue growing. Wall Street analysts support that view: Their consensus expectation is for 197% growth in fiscal 2026, which ends in August, and 63% growth in fiscal 2027. Despite the monster run-up Micron stock has already experienced, it could have room to climb further .
