Top Stocks to Double Up on Right Now

Doubling down on stocks that have fallen is a popular strategy, but there is no reason why you can't also add to shares of stocks that have gains in your portfolio. Let's look at two stocks to double up on now to take advantage of what are likely to be future gains.

Micron Technology

Micron Technology (NASDAQ: MU) shares have been hot, trading up around 345% over the past year, as of this writing. However, the stock is not expensive, trading around a forward price-to-earnings (P/E) ratio of just 12 times fiscal 2026 analyst estimates.

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Micron's cheap valuation stems from the historically cyclical nature of the memory market. The company is one of the three big DRAM (dynamic random-access memory) makers, and the market has seen a lot of big swings over the years from cycles of oversupply and undersupply. However, with the artificial intelligence (AI) infrastructure build-out and creation of high bandwidth memory (HBM), the market looks to have gone from cyclical to having a structural driver.

For graphics processing units (GPUs) and other AI chips to perform their best, they need to be packaged with HBM, which by itself is a big growth driver. However, on top of that, HBM requires upward of 3 times the wafer capacity of normal DRAM, which is causing an overall DRAM shortage while HBM demand continues to soar. This is leading to not just increasing revenue for Micron, but a huge boost to its gross margin, as well. Best of all for Micron, though, is that customers are willing to lock in long-term supply agreements for HBM, which creates visibility and takes out some of the cyclicality of the business. That makes the stock still a buy.

Taiwan Semiconductor Manufacturing

While its stock has more than doubled over the past year, Taiwan Semiconductor Manufacturing (NYSE: TSM) is another stock worth considering doubling up on. With a forward P/E of below 26 times and a forward price/earnings-to-growth (PEG) ratio of just 0.75 times (with positive PEG ratios below 1 considered undervalued), the stock remains attractively priced.

TSMC is the world's leading foundry and is the only company that has shown the ability to produce advanced logic chips at high yields at scale. This has made it an invaluable partner to chip designers and one of the biggest beneficiaries of the current AI infrastructure build-out. The company is working closely with its customers to expand capacity to meet their growing needs, and expects to see its AI revenue increase at an average yearly rate above 50% over the next several years. Meanwhile, with a virtual monopoly on the manufacturing of advanced logic chips, it also has nice pricing power.

That makes the stock a buy, even as it trades near its all-time highs.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.