12 Hot AI Stocks on Wall Street’s Radar

6. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 105

Micron Technology, Inc. (NASDAQ:MU) is one of the 12 Hot AI Stocks on Wall Street’s Radar. On December 9, HSBC initiated coverage of the stock with a “Buy” rating and a $330 price target. The firm believes that Micron enjoys tech leadership and benefits from robust AI-related memory tailwinds.

“Micron’s share price is up 172% [year-to-date], outperforming the NASDAQ (up 22%) but recently the share price has been subdued as the market appears overly concerned about financial risks from [neo-cloud service providers], and the Stargate Project; we believe that [cloud service providers] which invest with their own EBITDA will maintain their strong capex implementation. We see it as a good time to accumulate the stock.”

– HSBC analyst Ricky Seo wrote in a note to clients.

Seo anticipates Micron to benefit from a 4-to-5-year-long upcycle instead of the 2-3 year cycle that it has historically enjoyed. This cycle will be boosted by factors such as incremental AI spending from neo-cloud service providers, Stargate Project and the major cloud service providers. Meanwhile, limited capacity should curb any output growth.

DRAM and NAND markets are also anticipated to grow, with Micron being a prime beneficiary.

“We expect the DRAM and NAND markets to grow 69% and 62% [year-over-year] respectively, in 2026e; Micron will be one of the key beneficiaries.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.