5 Best AI Stocks to Buy for 2026 According to Billionaire David Tepper

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

Number of Hedge Fund Holders: 137

Appaloosa Management Equity Stake: $428.12 Million

Micron Technology Inc. (NASDAQ: MU) is one of the best AI stocks to buy for 2026, according to billionaire David Tepper. On May 10, Micron Technology Inc. (NASDAQ: MU) emerged as one of the forces behind the global semiconductor industry entering a melt-up phase. The industry has exploded to $3.8 trillion in market capitalization over the past six weeks, driven by significant gains in traditional CPU and memory chip players.

The gains are also supported by significant earnings growth amid strong demand for CPU and memory chips. Micron Technology is projected to generate $77 billion in operating profit this year, a significant improvement from its 2023 losses. The bounce back to profitability comes amid demand for memory chips outstripping supply.

While Micron has rallied by over 100% year to date, some analysts believe its valuation remains grounded by the unprecedented growth. Micron stock trades at 8.9 times projected earnings, well below the 21 times the S&P 500 trades at.

Micron Technology, Inc. (NASDAQ:MU) accelerates AI by providing the critical high-bandwidth memory (HBM), DRAM, and NAND storage required for data-intensive AI training and inference in data centers and edge devices. They supply crucial hardware to Nvidia for GPU systems and use AI to optimize their own semiconductor manufacturing processes.