TLDR
- Micron (MU) and Palantir (PLTR) have each surged more than 400% over two years, exceeding Nvidia’s 153% gain.
- Micron’s HBM chips are highly sought after for AI data centers, and supply shortages are enhancing its pricing power.
- Micron anticipates Q2 FY2026 revenue in the range of $18.3B to $19.1B, with earnings projected to increase by 300.7% this year.
- Palantir’s AI Platform (AIP) fueled a 137% YoY rise in U.S. commercial revenue; full-year 2026 revenue is anticipated to surpass $7B.
- Both stocks hold robust analyst ratings: Micron has a Zacks Rank #1 (Strong Buy), and Palantir holds a Rank #2 (Buy).
Nvidia is frequently considered the benchmark for AI investment success. However, two other stocks have subtly outperformed it in the last two years.
Since early 2024, Micron Technology (MU) and Palantir Technologies (PLTR) have advanced by 405.9% and 412.6%, respectively. During the same timeframe, Nvidia rose 153%.
Analysts now view both firms as well-positioned to maintain robust growth, fueled by AI demand in data centers and enterprise software.
Micron’s HBM Chips Are in Short Supply
Micron manufactures high-bandwidth memory (HBM) chips, a critical part of AI servers and data centers. Demand has skyrocketed as technology companies rapidly expand their AI infrastructure.
Supply has failed to match this rising demand. This imbalance has granted Micron greater control over pricing and elevated its profit margins.
CEO Sanjay Mehrotra has stated that the constrained supply conditions are likely to keep bolstering the company’s results. The firm forecasts Q2 FY2026 revenue of $18.3B to $19.1B, an increase from $13.64B in Q1.
Earnings for the current fiscal year are predicted to grow by 300.7%, with consensus estimates setting earnings per share at $33.73.
Micron supplies HBM chips to AMD as well as Nvidia. This diverse clientele lessens its dependence on any one customer.
The market research company TrendForce projects the total memory market will expand from $235 billion in 2025 to $552 billion in 2026, and to nearly $843 billion by 2027.
Micron is currently valued at 13 times forward earnings, versus 25 times for the Nasdaq-100. This difference indicates potential for the stock’s valuation to increase as earnings rise.
AI Platform Keeps Winning Government and Commercial Deals
Palantir’s primary offerings — Gotham, Foundry, and its Artificial Intelligence Platform (AIP) — encounter little direct competition. AIP enables organizations and government bodies to implement AI and large language models within intricate data systems.
Palantir’s U.S. commercial revenue soared 137% year over year in Q4 2025, attaining $507 million. Government revenue for the same quarter reached $570 million, a 66% year-over-year increase.
The remaining deal value from Palantir’s U.S. commercial customers was $4.38 billion in Q4 2025, up 145% from the previous year. This metric provides insight into upcoming revenue.
The company expects its full-year 2026 revenue to more than double, rising from $3.32 billion in 2025 to between $7.182B and $7.198B.
Palantir also reported a Rule of 40 score of 127%, significantly above the 40% benchmark that indicates a healthy, scalable software enterprise.
Zacks assigns Micron a Rank #1 (Strong Buy) and Palantir a Rank #2 (Buy).
Micron’s estimated earnings growth rate for the upcoming fiscal year is 78.7%.
