In this article, we will list the 5 Best Performing AI Stocks Over the Last 3 Years. Please visit 10 Best Performing AI Stocks Over the Last 3 Years if you’d like to see an extended list and the methodology behind it.
5. Micron Technology, Inc. (NASDAQ:MU)
Micron Technology, Inc. (NASDAQ:MU) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 152%.
On June 24, Micron disclosed 16 strategic customer agreements carrying $22 billion of commitments to secure memory-chip supply. Reuters reported that the multi-year arrangements include take-or-pay provisions, cash deposits, and pricing floors; 14 agreements represented roughly $100 billion of remaining performance obligations. The structure is notable because it asks customers to share more of the capacity and pricing risk that memory producers historically carried themselves.
Micron also reported quarterly revenue of $41.46 billion and adjusted earnings of $25.11 per share. Management said AI demand and structural supply constraints could keep conditions tight beyond 2027. That outlook is supportive, but the contracts do not eliminate cyclicality. Additional industry capacity, cheaper memory alternatives, or weaker end demand could eventually reduce pricing power. For now, the agreements provide a firm demand signal and show how critical high-bandwidth memory and storage have become to AI deployments.
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage products, including DRAM, NAND, NOR, high-bandwidth memory, and solid-state drives for data centers, AI systems, clients, mobile devices, vehicles, and industrial applications.
4. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 153%. On July 6, William Blair analyst Sebastien Naji named Credo his top semiconductor pick for the next six months. That followed several constructive June calls. Evercore ISI analyst Mark Lipacis initiated coverage on June 22 with an Outperform rating and a $325 target, describing Credo as an AI-connectivity leader moving from a mainly copper portfolio toward a combined copper-and-optical offering.
The same day, Stifel analyst Tore Svanberg maintained a Buy rating and raised his target to $350 from $250 after management meetings, citing the company’s vertically integrated, system-level approach across both technologies. Bank of America kept Buy on June 26. The common thread is that larger AI clusters require more high-speed, energy-efficient connections. Credo’s active electrical cables, digital signal processors and optical products address that need. Risks include customer concentration, rapid interface transitions, and expectations that already assume substantial growth.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions, including active electrical cables, digital signal processors, retimers, SerDes chiplets, and optical components for hyperscale, cloud, and AI networks.
3. AppLovin Corporation (NASDAQ:APP)
AppLovin Corporation (NASDAQ:APP) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 168%. On June 29, Raymond James analyst Andrew Marok initiated coverage with a Strong Buy rating and a $640 price target. Marok identified expansion into e-commerce advertising as a significant long-term opportunity and tied his thesis to continued improvement in AppLovin’s AI models, monetization of mobile in-app advertising and a financial profile marked by high margins and cash conversion.
By July 2, AppLovin Ads had opened to all advertisers and removed its referral requirement. Broader distribution gives the company a clearer test of whether its AXON technology can work beyond its established gaming base. The opportunity is accompanied by execution risk: adding advertisers is different from retaining their budgets at attractive returns. Wells Fargo’s July 7 note kept an Overweight rating and nudged its target to $575, but flagged weaker mobile-game return on ad spend, modest web-advertiser growth and competitive pressure.
AppLovin Corporation (NASDAQ:APP) operates an advertising technology platform that uses AI-based tools to match advertisers with audiences, optimize campaigns, and support monetization across mobile apps, connected television, and e-commerce.
2. Western Digital Corporation (NASDAQ:WDC)
Western Digital Corporation (NASDAQ:WDC) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 173%. On June 15, Morgan Stanley analyst Erik Woodring maintained an Overweight rating and raised his price target to $650 from $488. Woodring’s thesis centered on a widening hard-disk-drive shortage. He estimated demand was growing 40% to 50% annually against supply growth of 30% to 35%, with cloud expansion and AI inference increasing storage requirements. Rising NAND flash prices also make high-capacity hard drives more economically attractive for some large datasets, supporting more predictable pricing. Western Digital shares gained 16% that day, leading the S&P 500.
Bank of America reiterated Buy with a $732 target on July 1. The durability of the thesis depends on supply discipline and workload growth. If customers delay deployments, reuse existing capacity, or shift their storage mix, tightness could ease. For now, analyst attention has moved from unit volumes toward pricing power and data-center demand visibility.
Western Digital Corporation (NASDAQ:WDC) develops data-storage devices and platforms, with a primary focus on high-capacity hard disk drives used in cloud data centers, enterprise systems, video applications, and consumer storage.
1. Celestica Inc. (NYSE:CLS)
Celestica Inc. (NYSE:CLS) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 185%. In early June, RBC Capital analyst Paul Treiber maintained an Outperform rating and a $440 price target. Treiber cited stronger 2026 and 2027 outlooks, while noting that component shortages had limited first-quarter upside.
In another important development, on July 6, the company appointed Steven Dorwart president of Connectivity and Cloud Solutions, succeeding Jason Phillips, who will remain an adviser through year-end. A 21-year veteran, Dorwart previously ran global accounts within the segment. Connectivity and Cloud Solutions houses much of Celestica’s data-center networking, compute and storage activity, including high-speed Ethernet platforms and rack-level systems. The leadership handoff matters because the segment is managing rapid product transitions and customer programs that require timely engineering execution. Dorwart’s customer background may support continuity, but the operating bar is high. Investors will need to assess whether the division can sustain growth while managing concentration, component supply, and the shift toward 1.6-terabit networking.
Celestica Inc. (NYSE:CLS) provides design, engineering, manufacturing, supply chain, and platform solutions, including networking, compute, storage, rack integration, and power and thermal systems for AI, cloud, and hybrid-cloud infrastructure.
While we acknowledge the potential of CLS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLS and that has 100x upside potential, check out our report about the cheapest AI stock.
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