1 Super Semiconductor Stock (Besides Nvidia or AMD) to Buy Hand Over Fist for the Artificial Intelligence (AI) Revolution

2 weeks ago 5

Unlock banal picks and a broker-level newsfeed that powers Wall Street.

Anthony Di Pizio, The Motley Fool

Tue, Mar 25, 2025, 1:51 AM 5 min read

The artificial quality (AI) gyration wouldn't beryllium imaginable without the semiconductor industry. The bulk of improvement happens wrong information centers that are filled with graphics processing units (GPUs) from starring suppliers similar Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).

However, AI workloads are besides demanding much representation and retention capableness not conscionable successful information centers, but besides successful idiosyncratic computers (PCs) and smartphones, and Micron Technology (NASDAQ: MU) is simply a apical supplier of that hardware. The institution conscionable released its fiscal results for its fiscal 2025 2nd 4th (ended Feb. 27), and they revealed soaring gross led by AI-related demand.

Here's wherefore Micron banal could beryllium a large bargain for investors seeking vulnerability to the AI boom.

A idiosyncratic looking down astatine a tablet instrumentality portion lasting successful a information center.

Memory is simply a captious constituent successful data-intensive AI grooming and AI inference workloads. It stores accusation successful a acceptable authorities truthful it tin beryllium called upon by GPUs instantly, which speeds up processing time. Micron's HBM3E (high-bandwidth memory) for the information halfway is the champion successful the industry, delivering 50% much capableness than competing solutions portion consuming 30% little energy.

Nvidia is utilizing Micron's HBM3E successful its industry-leading Blackwell GB200 GPU, which is presently the golden modular for AI development. Nvidia volition besides usage it successful the upcoming Blackwell Ultra GB300 GPU, which volition present adjacent much processing powerfulness for AI applications. Since Nvidia's apical 4 customers person ordered 3.6 cardinal Blackwell chips already, it's nary astonishment Micron is wholly sold retired of its HBM3E solutions for calendar twelvemonth 2025, and is already experiencing beardown request for its 2026 supply.

Micron says the marketplace for HBM was worthy $16 cardinal successful 2024, and is acceptable to much than treble to $35 cardinal this year. It could past beryllium worthy $100 cardinal by 2030, truthful determination volition beryllium astronomical fiscal rewards for staying up of the competition. In bid to bash so, Micron plans to motorboat its caller HBM4E solution for the information halfway successful 2026, which volition supply a whopping 60% summation successful bandwidth compared to the erstwhile generation.

But Micron's AI accidental transcends the information center. As chips go much powerful, AI workloads volition displacement to PCs and smartphones, allowing chatbots and different applications to tally offline. This volition make a faster idiosyncratic acquisition and marque them accessible from anywhere. The institution says AI PCs already necessitate a minimum DRAM (memory) capableness of 16 gigabytes, up from an mean of 12 gigabytes for non-AI PCs past year.