Prediction: 1 Artificial Intelligence (AI) Stock That Will Be Worth More Than Palantir and Micron Combined by 2028

Micron Technology (NASDAQ: MU) and Palantir Technologies (NASDAQ: PLTR) have been among the hottest artificial intelligence (AI) stocks on the market over the past couple of years. While Micron stock has shot up by a remarkable 272%, Palantir has posted an even bigger gain of 527%.

However, both companies have been under pressure of late. Palantir stock is down 20% so far in 2026, and Micron has been volatile over the past month amid concerns about the sustainability of AI-fueled memory demand following a potential technological breakthrough from Alphabet that could reduce the need for memory chips in data centers.

Moreover, Palantir continues to trade at a very expensive 225 times trailing earnings and 108 times forward earnings, even after its recent pullback. On the other hand, analysts are expecting that Micron's earnings will grow significantly in its next couple of years, but then slide in the year after that. These factors could weigh on their stock prices going forward. Meanwhile, Advanced Micro Devices (NASDAQ: AMD) has been gradually gaining ground in the AI data center space, and it won't be surprising to see it outperforming both Palantir and Micron over the next three years.

Here's how this semiconductor stock could become a bigger company than both Micron and Palantir combined by 2028.

Image source: AMD.

AI is going to supercharge AMD's growth

AMD has been quietly establishing itself as a notable player in AI data center chips. The company has secured a couple of major deals over the past six months that will significantly boost its growth rate.

AMD and OpenAI signed a deal in October that will see the company behind ChatGPT purchase 6 gigawatts (GW) of AMD's Instinct graphics processing units (GPUs). It will begin to deploy the first gigawatt of that volume in the second half of 2026.

Bernstein Research estimates that building a 1 GW data center costs $35 billion. The equity research firm notes that 39% of that spending, or roughly $14 billion, is allocated to GPUs. So, AMD could be looking at around $80 billion in revenue from the OpenAI deal in the long run, assuming the AI company ends up actually deploying the 6 GW of AMD's chips.

The second noteworthy AMD deal is the one it just inked with Meta Platforms. The social media giant will also be deploying 6 GW of AMD's data center GPUs as a part of a multiyear deal announced in February. This could add another $80 billion to AMD's long-term revenue pipeline. What's more, Meta will continue to buy AMD's Epyc server CPUs (central processing units) for its data centers, indicating that the actual revenue potential from this deal could be much greater.

Meta will also start deploying AMD's newest GPUs in the second half of 2026. Not surprisingly, analysts are forecasting AMD's top-line growth will accelerate next year, following an estimated 35% jump in 2025 to $46.6 billion.

AMD Revenue Estimates for Current Fiscal Year data by YCharts.

That impressive top-line growth will translate into terrific earnings growth.

AMD EPS Estimates for Current Fiscal Year data by YCharts.

This suggests that AMD stock could jump nicely over the next three years, which may be enough to push it past the combined market caps of Palantir and Micron.

AMD's upside potential

Micron and Palantir currently have a combined market cap of roughly $854 billion. Palantir's extremely steep valuation could keep the stock from heading higher, while Micron's bottom line is expected to climb in this fiscal year and the next one, but then decline.

MU EPS Estimates for Current Fiscal Year data by YCharts.

That longer-term pessimism could weigh on Micron's stock price. On the other hand, we have seen that AMD can clock terrific earnings growth. Also, its forward earnings multiple of about 39 is far less expensive than Palantir's 108. Indeed, AMD trades more or less in line with the U.S. tech sector's average earnings multiple of 39.

Assuming its earnings reach $14.78 per share in 2028, and it trades at even 36 times earnings at that time, AMD stock could jump to $532. That's a potential rise of 106% from current levels, indicating that its market cap could climb to almost $868 billion by the end of 2028, sufficient to overtake the combined market caps of Palantir and Micron.

So, investors looking to buy a top AI stock that could enhance their wealth in the long run would do well to take a closer look at AMD.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Micron Technology, and Palantir Technologies. The Motley Fool has a disclosure policy.