The artificial intelligence (AI) boom has benefited shareholders in many companies. For example, AI chip stocks such as NVIDIA Corporation (NASDAQ: ) and Advanced Micro Devices Inc (NASDAQ: ) have risen, while Super Micro Computer Inc (NASDAQ: ), which makes AI-enhanced servers, has There has also been a significant increase.
However, for those who missed the rally in these names, could someone else be the next big AI winner?
AI chip stock winners
As mentioned, NVIDIA and AMD were stocks that have gained based on the AI surge.
Nvidia, seen as the biggest winner, is up more than 81% in 2024 and up 249% over the past 12 months. Its gains have yet to run out, with Nvidia having climbed more than 20% in the past month, now trading near the $894 mark after hitting an intraday high of more than $973 in early March.
AMD, meanwhile, has had a rough time of late, but despite that, it’s up 25% this year and more than 88% over the past 12 months. Since hitting an intraday high of more than $227 in early March, it has retreated to around $182 a share.
On the other hand, SMCI has been the biggest winner when it comes to percentage gains. The company’s shares are up 225% year-to-date and 854% over the past 12 months. This is despite a recent pullback below $900 per share after an intraday high of $1,229 on March 8.
Micron (NASDAQ:) stock could be next, says analyst
The rise of these AI-related stocks raises the question of what the next name could be. Analysts at Lynx Equity Strategies have an idea.
“They expect MU’s earnings event today to be a wake-up call that highlights the central role of flash storage in the ongoing AI revolution,” the firm said in a note.
The firm explained that it is calling for a trend that is “more than just gradualism.”
“Sometime during the February quarter, we believe flash storage demand from AI data centers experienced a sharp upward trend leading to increased visibility of MU’s NAND, and consequently, fab utilization,” he said. wrote “On today’s earnings call, we expect a qualitative upgrade in the outlook for its NAND business, driven by the all-flash storage array.”
Additionally, Lynx feels Street still doesn’t appreciate the fundamental role of flash storage in AI data lake creation and AI training.
“In addition to its well-understood role of DRAM/HBM in AI servers, if MU’s NAND business were to become an AI core, we think MU would be undervalued by investors as a cyclical commodity play. Can be understood and increasingly secular pure play in AI,” he added.
“In our assessment, industry conditions are ripe for MU to revisit the heyday of the FY17/18 super cycle,” the firm announced, adding that over the next 12 to 18 months, it expects MU to emerge. Has the ability. Pure game AI, second only to NVDA.
“We will be long the print and increase the position on weakness. We have a line of vision for a PT of $150 and a ~$150bn market cap,” he added. “And if the stars align, MU could rival AMD’s market cap, which currently runs at ~$300+bn.”