Micron Technology

MU

Market cap $266B

The greatest beneficiaries of a Santa rally tend to be the year's dominant themes. December seasonality gives investors another timely opening to lean into three stocks that focus on the market's strongest theme of 2025 – AI infrastructure boom. The economic backdrop consists of moderating growth combined with softening data supporting lower interest rates and the potential for strong seasonal returns.

This company saw outstanding growth in revenue and earnings thanks to a favorable demand-supply environment. It can be bought at an incredibly cheap valuation right now, despite clocking triple-digit gains this year.

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U.S. chipmaker Micron Technology will invest 1.5 trillion yen ($9.6 billion) to build a next-generation memory manufacturing facility in western Japan to support artificial intelligence computing, Nikkei reported on Saturday

Micron continues to transition from a cyclical memory supplier to a mission-critical AI infrastructure provider, driven by its strategic DRAM, NAND and HBM roadmap. The company's dual-track roadmap for standard and customized HBM4E with TSMC support starting 2027 preserves Micron's AI share gains amid shifting GPU vs. custom ASIC adoption trends in the long-run. Tight supply-demand dynamics and accelerating pricing power across both HBM and non-HBM memory is also materially improving durability in Micron's growth outlook and margin profile.

Here, we have picked three AI stocks, NVDA, MU and ADI, which are well-poised to benefit from AI's growing use and ability to solve complex problems.

If there's widespread adoption of Google's TPU ecosystem, there are plenty of stocks that may flourish as a consequence.

US stocks have been in a sharp uptrend over the past seven months, with the benchmark S&P 500 index currently up more than 35% versus its year-to-date low in April. Still, a handful of outperformers are trading at relatively low forward valuations heading into 2026.

AMZN, NVDA, PLTR and MU emerge as top large-cap tech picks as markets rebound and December rate cut hopes lift sentiment.

Micron (MU) closed the most recent trading day at $230.26, moving +2.55% from the previous trading session.