These AI Stocks Could Lead the Next Bull Market, and They Are Still Cheap

The U.S equity market entered 2026 with solid momentum following strong gains in 2024 and 2025. Much of that performance was driven by a surge in artificial intelligence (AI)-related stocks. Companies of all kinds are increasingly investing in AI infrastructure and software and beginning full, production-grade implementations.

Grand View Research estimates that the global AI market could grow from $390.9 billion in 2025 to $3.5 trillion by 2033, implying that AI adoption is still in the early stages. Against this backdrop, there are still a few AI-focused companies that are attractively valued compared to their long-term growth potential and could become market leaders in the next bull market.

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Micron Technology

Micron Technology (NASDAQ: MU) entered 2026 with an impressive financial and operational profile, backed by robust AI-driven demand for memory solutions. The company delivered stellar 56% year-over-year revenue growth to $13.6 billion in the first quarter of fiscal 2026 (ending Nov. 27, 2025).

Demand for its DRAM, NAND, and high-bandwidth memory (HBM) offerings significantly outpaces available supply, and Micron is seeing stronger pricing power and expanding margins. Management said the company's HBM output for 2026 is fully allocated, with volumes and pricing already agreed upon with customers. This contractual visibility has given Micron strong revenue and pricing certainty.

Unlike prior memory cycles, which depended heavily on short-term inventory swings, the current cycle is driven by a multi-year AI infrastructure buildout. According to Goldman Sachs estimates, hyperscaler AI companies are estimated to spend nearly $527 billion in AI-related capital expenditures in 2026. Each new generation of AI chips also requires significantly more performance memory to run AI workloads, including HBM and high-capacity solid-state drives or storage memory.

Micron is also focused on disciplined execution. The company reported nearly 30% free cash flow margin and reduced debt by $2.7 billion in the first quarter. The stock trades at 8.6 times forward earnings, which is relatively modest considering its market-leading position. Considering these factors, Micron seems a worthwhile pick now.

Qualcomm

Qualcomm (NASDAQ: QCOM) entered 2026 as a diversified AI semiconductor player and not just a handset company. The company delivered non-GAAP revenue of $44 billion and free cash flow of $12.8 billion in fiscal 2025 (ending Sept. 28, 2025), while also maintaining solid operating margins. The company has the financial flexibility to invest and expand in multiple AI-driven markets.

Qualcomm is well-positioned to benefit from the ongoing AI PC upgrade cycle. The company plans to commercialize around 150 Snapdragon-powered (Snapdragon, Qualcomm's complete computing platform) AI PC designs through 2026. The introduction of the Snapdragon X2 Plus family of processors extends AI PC capabilities to a wider range of price points, helping move AI PCs beyond early adopters to volume adoption.

The automotive segment could be a significant opportunity, contributing revenue of over $1 billion in the fourth quarter. The company also expanded into AI data centers and plans a 200-megawatt deployment this year.

Trading at around 12.8 times forward earnings, Qualcomm stock may prove to be a reasonably valued AI play in 2026.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Qualcomm. The Motley Fool recommends Micron Technology. The Motley Fool has a disclosure policy.