Nvidia CEO Jensen Huang Said the Semiconductor Industry Could Grow to $7.9 Trillion to Support the Agentic AI Boom. Here Are 2 Stocks That Could Benefit

The artificial intelligence (AI) revolution has so far defied the bears' prophecies of doom, and there are reasons to believe it will continue to do so. We may be entering the age of AI agents, or self-directed systems that can autonomously execute tasks, work toward goals, and help corporations achieve significant productivity gains. The agentic AI boom could catapult the semiconductor industry to new heights. Nvidia's (NASDAQ: NVDA) CEO, Jensen Huang, has a lot to say on the topic. After predicting in a recent Bloomberg interview that we will eventually have billions of AI agents, here's what he said about how big the industry needs to be to support that agentic AI explosion:

My guess is the semiconductor industry will probably have to be 10 times larger than it is today over the next decade or so.

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The industry was valued at roughly $791.7 billion last year, according to some estimates, so that means Huang believes it could be worth $7.9 trillion in a decade. As he said, that's a mere guess, but the general sentiment is that the industry will need to expand rapidly over the next 10 years as agentic AI takes over. Several companies could capitalize on this and deliver strong returns. Here are two stocks to consider to avoid getting left behind: Nvidia itself and Micron Technology (NASDAQ: MU).

Image source: Nvidia Corporation.

1. Nvidia

Nvidia remains the undisputed leader in the GPU (Graphics Processing Unit) market, and the company's financial results and guidance suggest sustained demand for its products. In the first quarter of its fiscal year 2027, ended April 26, Nvidia's revenue jumped by 85% year over year to $81.6 billion. Gross margins increased to 74.9%, up from 60.5% in the comparable period of the previous fiscal year. Nvidia's adjusted earnings per share (EPS) were $1.87, up 140% year over year.

The company famously projected $1 trillion in purchase orders for its Blackwell and Vera Rubin (which was released this year) through 2027. Nvidia's new Vera Rubin architecture is particularly important, since it includes the stand-alone Vera CPU (Central Processing Unit).

Agentic AI systems run on CPUs, so there should be sustained demand in that corner of the industry as AI agents become increasingly popular. Nvidia projected $20 billion in stand-alone CPU revenue through the end of 2026, and sees a $200 billion addressable market in that niche alone. That highlights the fact that Nvidia is no longer just a GPU company. The semiconductor specialist builds not just the chips, but also the systems, software, and networking that power AI.

That grants Nvidia strong prospects as the industry marches forward, and the company doesn't seem too expensive at current levels. Nvidia is trading at 22.9x forward earnings, versus an average of 20x for information technology stocks. That valuation is fair, considering Nvidia's position in the industry.

2. Micron Technology

Micron makes memory and storage chips used in everything from smartphones to data centers. The company's data center business has been its biggest growth driver in recent quarters, as the memory chip shortage has supported sustained demand for its hardware and given it significant pricing power. Micron's financial results have exploded as a result.

In the third quarter of its fiscal year 2026, ended on May 28, Micron's revenue was $41.46 billion, growing by almost 346% year over year. The company's margins improved significantly, as did the bottom line. Micron's adjusted EPS of $25.11 was about 1215% higher than the year-ago period.

Meanwhile, one of the company's biggest competitors, Samsung Electronics, expects the memory chip shortage to last at least until 2028. And beyond that, if Huang's predictions about the semiconductor industry's direction over the next decade are even remotely correct, demand for Micron's products should remain healthy over this period. The market isn't convinced, though.

The stock is experiencing a pullback, with shares down 15% over the past month as many investors take some profits, fearing its amazing run won't last much longer. But as a counterpoint, Micron is trading at just 5.3x forward earnings, which seems like a bargain given how quickly revenue and earnings are growing. Further, the company has signed several long-term supply agreements that somewhat protect it against a sharp decline in revenue and earnings if demand for its products slows.

What does all this mean for investors? The tech stock could deliver outstanding returns over the long run if the AI industry maintains its momentum or the memory chip shortage persists. Investors who believe either outcome is likely should consider buying Micron's shares on the dip.

Prosper Junior Bakiny has positions in Nvidia. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.