5 Best Stocks to Buy for the AI Boom in the Second Half of 2026

2. Micron Technology Inc (NASDAQ:MU)

Number of Hedge Fund Holders: 154

Stock Upside Potential: 66.38%

Micron Technology Inc (NASDAQ:MU) is one of the best stocks to buy for the AI boom in the second half of 2026. Micron shares are up more than 200% year-to-date and have returned more than 676% over the past year. Some 154 hedge funds have confidence in Micron as analysts continue to see upside potential in the stock.

On July 6, Citi reiterated a Buy rating on Micron Technology Inc (NASDAQ:MU) stock with a price target of $1,400, which implies roughly 48% upside potential to the current price. According to the brokerage, Micron should continue to enjoy favorable pricing in the DRAM memory market due to the surging AI processor demand. AI processors require vastly expanded memory compared to conventional processors.

Micron is expanding its production capacity to capitalize on the booming memory demand. On July 4, Bloomberg reported that Micron is building a new chip facility in Japan to produce high-bandwidth memory used alongside AI processors. Micron aims to begin fitting this facility with manufacturing equipment in the second half of 2028. The company is also expanding its manufacturing capacity in the US with additional production facilities in Boise and New York.

Micron Technology Inc (NASDAQ:MU) makes computer memory and data storage products. Its portfolio includes dynamic random-access memory, flash memory, high bandwidth memory, and solid-state drives. Micron’s high-bandwidth memory plays a crucial role in AI inference servers.