Financial Insights That Matter
It’s been a rough couple of months for artificial intelligence (AI) stocks.
In January, China’s DeepSeek AI sparked a sell-off in chipmakers after sharing breakthroughs in developing a more efficient large language model that doesn’t rely as heavily on compute power.
The sell-off accelerated after Nvidia (Nasdaq: NVDA) reported financial results that failed to impress investors and meet high expectations.
That was exacerbated in February by the Trump administration’s trade policies toward China, Mexico, and Canada. Many expect Taiwan, where Nvidia and other chipmakers manufacture their products, is on the president’s short list for future tariffs.
The result is Nvidia stock now trades more than 20% below its high from the start of the year as of this writing. And many investors may be thinking it’s a great opportunity to snatch up shares of the AI leader. But Nvidia wasn’t the only stock that saw its price drop during the sell-off, and there are many other stocks that present even more attractive opportunities.
Here are three stocks you can’t afford to ignore right now.
Investors who are bullish on the long-term potential of Nvidia to keep selling more of its high-end GPUs to hyperscale cloud customers should take a closer look at Micron Technology (name: mu). Micron supplies a key component of Nvidia’s chips: high-bandwidth memory (HBM).
Memory, not the actual compute power, is often the bottleneck in training large language models. The problem will only increase as the number of parameters in newer LLMs increases. Newer reasoning models also require more memory capacity and more efficient access to that memory.
Thus advances in memory chips can have a significant value add for the hyperscalers. Micron is one of the leading memory chipmakers in the market, supplying Nvidia as well as other chipmakers with its latest generation of HBM chips.
Memory is also an important component for inference. Greater memory capacity produces faster responses and allows AI systems to maintain larger context windows. As technology moves toward on-device AI, personal device makers will need to increase their demand for memory.
There are a few important risks to consider with Micron, though.
First, it’s hard to establish a meaningful competitive advantage in memory chips. The component is easily swapped for competing chips in data centers and consumer devices. That’s what enabled Micron to win its position with Nvidia and others in recent years from companies with much larger operations. However, it means Micron needs to continue to invest in research and development to ensure it maintains its technology lead.
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