Prediction: This Artificial Intelligence (AI) Stock Could Be the Biggest Winner of Nvidia's $1 Trillion Chip Boom

At his company's caller Annual Product Expo, Nvidia (NASDAQ: NVDA) CEO Jensen Huang predicted that Nvidia's artificial quality (AI) processors would make $1 trillion successful income done 2027.

Obviously, Nvidia is 1 mode to play that income potential. But Nvidia is already the world's astir invaluable institution by marketplace cap.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Everybody knows the communicative with Nvidia. But there's a little salient banal that I deliberation volition go 1 of the biggest beneficiaries of the company's $1 trillion income projection.

It's Micron Technology Inc. (NASDAQ: MU), a large supplier to Nvidia of a captious constituent that is successful the mediate of a colossal shortage.

Micron produces representation -- that is, random entree representation (RAM) and dynamic random entree representation (DRAM). These components are what allows a machine to store and callback information, and AI needs immense amounts of memory.

The graphics processing units (GPUs) that Nvidia is celebrated for aren't truly azygous chips. They diagnostic respective components that let them to enactment their magic. One of those components is simply a representation chip.

Micron is down the HBM4 36 gigabyte (GB) representation spot successful Nvidia's caller Vera Rubin GPU, and it precocious began high-volume accumulation of that chip.

Micron is besides 1 of lone 3 ample measurement representation producers successful the world. The different 2 are Samsung and SK Hynix.

The representation shortage is truthful atrocious that prices for RAM are expected to emergence 50% implicit the archetypal 4th of 2026, compared to wherever they were astatine the extremity of 2025. Intel's (NASDAQ: INTC) CEO Lip-Bu Tan has crushed to judge determination volition beryllium nary alleviation to the representation shortage until astatine slightest 2028..

AI is gobbling up each disposable RAM and DRAM spot connected the market, and with the constricted fig of companies producing memory, each institution is acceptable for monolithic growth.

Look nary further than Micron's price/earnings-to-growth (PEG) ratio, which incorporates aboriginal net maturation into a company's price-to-earnings (P/E) ratio. A PEG of 1 is the perfect fair-value, but thing nether 1 means a banal is perchance undervalued. Micron is presently sitting astatine a PEG ratio of 0.44.

The company's yearly net per stock (EPS) for 2025 came successful astatine $8.29, beating expectations by $0.20. Not bad.

But Micron's projected EPS for 2026 is $51.49, oregon implicit six times its existent EPS for 2025. The representation shortage driving up prices is the main crushed for Micron's sky-high net projections.