By Geoffrey Seiler – Mar 31, 2026 at 10:45AM EST
Key Points
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Nvidia looks well positioned as AI transitions towards inference and agentic AI.
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Micron Technology is looking to take some of the cyclicality out of its business.
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Taiwan Semiconductor Manufacturing has a long runway of growth in front of it.
NASDAQ: NVDA
Nvidia
Today’s Change
(4.72%) $7.80
Current Price
$172.97
Key Data Points
Market Cap
$4.0T
Day’s Range
$166.96 – $173.88
52wk Range
$86.62 – $212.19
Volume
4.9M
Avg Vol
180M
Gross Margin
71.07%
Dividend Yield
0.02%
While there is a fear that hyperscaler spending will soon peak, these companies have consistently said they are getting strong returns on these investments, and in what most certainly can be characterized as a race, it is hard to see them slowing down.
Meanwhile, a bit underappreciated is how Nvidia is now positioning itself as a complete AI infrastructure solution. The introduction of language processing units (LPUs), stemming from its “acquisition” of Groq, NemoClaw, and its push into central processing units (CPUs), really sets the company up well for the next stage of AI centered on inference and agentic AI.
2. Micron
Micron Technology (MU +1.98%) s have started to run out of steam over the past month, down about 15% as of this writing. The sell-off comes despite the memory maker reporting incredible fiscal Q2 results in mid-March and issuing guidance that blew away expectations. The sell-off has left the stock trading at a forward P/E of just 3.5 times fiscal 2027 analyst estimates, while growing its revenue by triple digits and forecasting its gross margins to be above 80%.
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NASDAQ: MU
Micron Technology
Today’s Change
(1.98%) $6.36
Current Price
$328.16
Key Data Points
Market Cap
$363B
Day’s Range
$311.50 – $332.99
52wk Range
$61.54 – $471.34
Volume
2.3M
Avg Vol
39M
Gross Margin
58.54%
Dividend Yield
0.19%
The company is benefiting from the current supply-demand imbalance in both the DRAM (dynamic random access memory), from which it derives about 80% of its revenue, and NAND (flash) markets. However, these businesses have historically been very cyclical with big boom-and-bust cycles, and investors are worried that the current boom cycle could be peaking soon. That said, the current constrained environment is expected to last at least beyond this year.
At the same time, there is a reason to believe that this isn’t the same old cyclical Micron. The big driver of the DRAM market has been high bandwidth memory (HBM), a special form of DRAM that is packaged with GPUs and other AI chips to optimize their performance. Where AI chip demand goes, so does HBM demand.
Meanwhile, Micron is also looking to turn to longer-term contracts with HBM and recently signed its first five-year deal. If this becomes the norm and the company can shake its cyclical image, the stock should have strong upside from here.
Image source: Getty Images.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM +4.89%), another top tech stock, has seen its s pull back about 10% over the past month, as of this writing. The company is the largest chip manufacturer in the world, and it has a near-monopoly on making advanced chips at scale.
However, the current war in the Middle East has worried some investors about what impact it could have on the semiconductor industry. Numerous important resources used in the chipmaking process, including helium, bromine, and naphtha, are sourced from the Middle East, so there is some concern that this could disrupt the semiconductor industry. Even if this were to occur, though, it would be a short-term blip in a strong secular growth story.
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NYSE: TSM
Taiwan Semiconductor Manufacturing
Today’s Change
(4.89%) $15.47
Current Price
$331.97
Key Data Points
Market Cap
$1.6T
Day’s Range
$321.34 – $333.28
52wk Range
$134.25 – $390.20
Volume
698K
Avg Vol
14M
Gross Margin
58.73%
Dividend Yield
1.06%
TSMC is riding the AI infrastructure buildout wave, and it doesn’t matter whether companies are using GPUs or AI ASICs — it is the one manufacturing them. Meanwhile, the expected surge in demand for high-performance CPUs with the rise of agentic AI should be another growth driver. Throw in the advanced chips needed for the emerging robotaxi market, and TSMC has a very long growth runway ahead.
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About the Author
Geoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.
Stocks Mentioned
Nvidia
NASDAQ: NVDA
$172.92
(+4.69%)+$7.75
Taiwan Semiconductor Manufacturing
NYSE: TSM
$331.97
(+4.89%)+$15.47
Micron Technology
NASDAQ: MU
$328.06
(+1.95%)+$6.26
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
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