These 2 Artificial Intelligence (AI) Stocks Could Soar by 66% and 46%, According to Wall Street

Micron Technology (NASDAQ:MU) and Broadcom (NASDAQ:AVGO) have been among the biggest beneficiaries of the ongoing artificial intelligence (AI) revolution. Both have seen their shares soar over the past few years as a result. Micron is up about 1170% since 2021, while Broadcom has climbed 647% over the same period. Is there more upside left for these companies? Wall Street certainly thinks so.

Micron's average price target (according to Yahoo! Finance) is currently $1,515.11, implying an upside of about 66% from current levels. Meanwhile, Broadcom has an average price target of $526.30, so the Street thinks it could rise almost 46% over the next year. Should investors rush to buy shares of Micron and Broadcom based on these price targets? Let's find out.

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1. Micron Technology

Micron is a leading maker of memory chips. The company's products are in high demand right now amid the massive AI infrastructure build-out. Data centers need large numbers of memory chips to function, and Micron is cashing in on a current industry shortage, which gives the company significant pricing power. Micron has posted excellent financial results of late.

In the third quarter of its fiscal year 2026, which ended on May 28, Micron's revenue increased by 346% year over year to $41.46 billion. That was more in one quarter than the company's entire top line during its fiscal year 2025. That's impressive, and it may not even have been the most eye-popping thing in Micron's financial update. The company's adjusted earnings per share (EPS) soared 1,215% year over year to $25.11.

The question is whether Micron can maintain that pace. If the memory chip shortage continues for a while, it might. But how likely is that? According to some experts, the memory bottleneck will last at least until 2028. If that's the case, Micron could continue crushing broader equities for the next couple of years. Note that Micron is trading at just 6.2x forward earnings, versus an average of 20.9x for information technology stocks.

That valuation makes Micron look like a bargain at first glance, considering how fast its EPS is growing. But many investors worry that the sector's cyclicality means Micron's revenue and earnings growth will soon decrease substantially. That's a reasonable assumption based on solid historical precedent.

That said, Micron has tried to mitigate that risk by signing long-term deals. Coupled with predictions that the memory chip shortage will last at least a couple more years, that makes a strong case for the stock. Can Micron match Wall Street's estimates within a year? Maybe not. But at current levels, there could still be plenty of upside potential.

2. Broadcom

Broadcom is a leader in the Application-Specific Integrated Circuit (ASIC) market. These custom chips tailored to specific workloads have grown in popularity. Hyperscalers are increasingly relying on them because they are cheaper and sometimes offer better price-performance than comparable GPUs (Graphics Processing Units). The result should be lower costs and higher margins for the corporations that rely on them.

Broadcom seems to have attractive medium-term prospects in the industry, considering it is one of the leaders and has long-term deals in place with Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms(NASDAQ:META). Broadcom's partnership with Alphabet is particularly noteworthy, as the cloud computing leader has begun selling its custom chips to select customers. As Alphabet ramps up this business, it may double down on its partnership with Broadcom.

Meanwhile, Broadcom's financial results have improved significantly. The company's revenue for the second quarter of its fiscal year 2026, ended May 3, increased 48% year over year to $22.2 billion. Broadcom's adjusted EPS was $2.44, up 54% compared to the year-ago period.

Despite Broadcom's strong financial results, the stock has lagged broader equities this year, as of writing. Its shares even fell after it reported its second-quarter results, despite the company projecting more than 200% year-over-year revenue growth in its AI chip business for its upcoming third quarter, up from the 143% year-over-year sales growth it posted in Q2. Many investors don't believe Broadcom can keep up its recent pace.

But given the accelerating growth within its more important business right now, and the hyperscalers continuing to pour money into their AI ambitions, while relying more on custom chips, Broadcom might be in a better position than many investors think. The stock is trading at 19.7x forward earnings, which seems more than reasonable. Broadcom might gain 46% over the next 12 months. More importantly, the company still looks likely to provide strong returns through 2031.

Prosper Junior Bakiny has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Micron Technology. The Motley Fool has a disclosure policy.