Key Takeaways
- NVIDIA Corp. has seen a 36.6% surge in stock price this year due to the artificial intelligence (AI) boom
- Micron Technology, Inc. and BigBear.ai Holdings, Inc. have outperformed NVIDIA, with gains of 228.8% and 43.6%, respectively
- Strong demand for high-bandwidth memory (HBM) chips is expected to drive Micron’s quarterly results
- BigBear.ai’s acquisition of Ask Sage is expected to improve its top-line performance and drive future growth
- Both Micron and BigBear.ai have strong expected earnings growth rates, with Micron at 23.5% and BigBear.ai at 73.1%
Introduction to the AI Boom
The artificial intelligence (AI) boom has been a significant driver of growth in the tech industry, with many companies seeing substantial gains in their stock prices. One of the most notable beneficiaries of this trend has been NVIDIA Corp., whose stock has surged 36.6% this year. The company’s CUDA software platform and competitive advantage in the AI hardware market have fueled this growth, with ongoing demand for its Blackwell chips and plans to ship H200 AI chips to China ahead of the Lunar New Year holiday.
Risks and Challenges
However, NVIDIA’s future growth trajectory is not without risks. Escalating U.S.-China trade tensions remain a threat, and the company faces intensifying competition from rivals such as Advanced Micro Devices, Inc. and Intel Corp. as data center capital expenditures continue to rise. As a result, investors may be looking beyond NVIDIA to other stocks that have outperformed it this year and still offer upside as the AI boom continues.
Micron Technology, Inc.
One such stock is Micron Technology, Inc., whose shares have gained 228.8% this year. Strong demand for the company’s high-bandwidth memory (HBM) chips is expected to drive its quarterly results. These chips have the inherent capacity to reduce power consumption and process large volumes of data, making them ideal for AI infrastructure. With AI infrastructure rapidly expanding, demand for HBM chips has accelerated, and Micron expects its revenues for the second quarter of fiscal 2026 to come in between $18.3 billion and $19.1 billion.
BigBear.ai Holdings, Inc.
Another stock that has outperformed NVIDIA is BigBear.ai Holdings, Inc., whose shares have gained 43.6% this year. The company’s top-line performance is expected to improve going forward, supported by its definitive $250 million agreement to acquire Ask Sage, a fast-growing generative AI platform. Ask Sage has seen broad adoption, with users including the U.S. Space Force and the Defense Health Agency, and is designed for secure AI deployment in restricted fields such as defense and national security.
Growth Prospects
Both Micron and BigBear.ai have strong expected earnings growth rates, with Micron at 23.5% and BigBear.ai at 73.1%. BigBear.ai’s acquisition of Ask Sage is expected to drive future growth, while the company’s robust cash position provides ample resources to support its expansion. Micron’s expected earnings growth rate is driven by strong demand for its HBM chips, and the company’s cloud memory business unit is expected to perform particularly well.
Conclusion
In conclusion, while NVIDIA Corp. has been a major beneficiary of the AI boom, other stocks such as Micron Technology, Inc. and BigBear.ai Holdings, Inc. have outperformed it this year and still offer upside as the trend continues. Strong demand for HBM chips and the acquisition of Ask Sage are expected to drive growth for Micron and BigBear.ai, respectively, and both companies have strong expected earnings growth rates. As the AI boom continues to drive growth in the tech industry, these stocks are likely to remain compelling buys for investors.
Investment Advice
It is essential to note that past performance is no guarantee of future results, and inherent in any investment is the potential for loss. Investors should conduct their own research and consider their own risk tolerance before making any investment decisions. Zacks Investment Research provides a range of resources and tools to help investors make informed decisions, including its top stock-picking strategies, which have blown away the S&P’s average gain per year since 2000.