Micron Technology, Inc.

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Bullish +75

The Zacks Analyst Blog Highlights NVIDIA, Broadcom, Micron Technology, Western Digital, Vertiv and others

📅 The Zacks Analyst Blog features stocks including NVIDIA, Broadcom, Micron, Western Digital, Seagate, and others on May 1, 2026.

🧠 Four major AI hyperscalers—Meta, Alphabet, Microsoft, and Amazon—raised their total AI capital expenditure budget to $725 billion for 2026.

⚙️ The budget increase is driven by anticipated higher component prices and costs for expanding data center capacity over the next few years.

🏗️ Research firm McKinsey estimates global AI-powered data center infrastructure capex will reach approximately $7 trillion by 2030.

🔥 A surge in this capex demand has created a shortage of high-performance and low-power chips, as well as memory components.

⚡ NVIDIA remains the leader in generative AI GPUs, with Blackwell platforms driving higher shipments in early 2026.

🚀 NVIDIA announced its new "Vera Rubin" AI superchip, which offers 10 times more performance per watt than the previous Grace Blackwell system.

📦 Vera Rubin chips are scheduled for shipment starting in the second half of 2026, with a roadmap extending to Feynman chips by 2028.

💻 Broadcom is gaining momentum from growth in AI semiconductors and the successful integration of its VMware business.

🔌 Strong demand for Broadcom's networking products and custom AI accelerators (XPUs) supports large-scale AI deployments with improved efficiency.

🔗 Micron Technology is benefiting from expanding AI-driven memory markets, leading in high-bandwidth memory (HBM) solutions.

💾 Western Digital is executing strongly amid cloud and AI demand, seeing increased adoption of high-capacity hard disk drives for data centers.

💿 Seagate Technology has secured high-capacity nearline production contracts booked through 2026, with visibility extending to 2027.

🔭 Seagate's aerial density roadmap provides a long-term total cost of ownership advantage over alternative storage technologies.

📊 Credo Technology Group holds a Zacks Rank #1 due to the critical role of its Active Electrical Cables in AI-driven networking deployments.

Bullish Signals
  • Zacks analysts have rated Micron Technology Inc. (MU) with a Zacks Rank #1 (Strong Buy), signaling strong confidence in the stock's performance.
  • Micron is benefiting from rapidly expanding AI-driven memory and storage markets, specifically through record sales in the data center end market.
  • Accelerating adoption of High-Bandwidth Memory (HBM) solutions by hyperscalers is driving Micron's Dynamic Access Random Memory (DRAM) revenues higher.
  • The growing adoption of AI servers requires significantly more memory than traditional servers, which is further boosting demand for both high-capacity DIMMs and low-power server DRAM.
  • NVIDIA Corp. will start shipment of its new Vera Rubin AI superchip in the second half of 2026, delivering 10 times more performance per watt.
  • Broadcom Inc. has been granted a Zacks Rank #1 (Strong Buy) due to strong momentum fueled by growth in AI semiconductors and successful VMware integration.
  • Broadcom's deals with Google and Anthropic have provided an additional lift to its business alongside thriving AI semiconductor solutions.
  • Seagate Technology Holdings plc has high-capacity nearline production largely booked through 2026, providing strong demand visibility through 2027.
Risk Factors
  • Micron Technology Inc. (MU) is included in a blog post that primarily highlights strong Buy rankings for peers, yet it receives only a Zacks Rank #1 (Buy) instead of the higher-rated 'Strong Buy' status given to competitors like NVIDIA and Broadcom.
  • The article notes that AI hyperscalers raised their capital expenditure budget to $725 billion in 2026, an increase driven by expectations of higher component prices, which could compress future profit margins for memory suppliers.
  • Global AI-powered data center infrastructure capex is estimated to reach around $7 trillion by 2030, potentially leading to a severe crunch in high-performance chips and other memory components as supply may not keep pace with demand.
  • NVIDIA Corp. (NVDA), a key competitor, has already secured a dominant position with Blackwell GPUs and plans to introduce the new Vera Rubin superchip in the second half of 2026.
  • Broadcom Inc. (AVGO) is gaining significant momentum from deals with Google and Anthropic as well as its VMware integration, threatening to erode Micron's market share in AI infrastructure solutions.
  • Western Digital Corp. (WDC) carries a Zacks Rank #3 (Hold), indicating mixed analyst confidence compared to the bullish sentiment surrounding its peers.
Full Analysis
Zacks Investment Research announced its daily Analyst Blog highlights on Friday, May 1, 2026, featuring several semiconductor and technology companies including NVIDIA Corp., Broadcom Inc., Micron Technology Inc., Western Digital Corp., Seagate Technology Holdings plc, and Vertiv Holdings Co. The blog centers on the theme "Big Techs Assure Lasting AI Frenzy: Which Stocks Will Gain?", driven by significant capital expenditure increases from four major AI hyperscalers—Meta Platforms Inc., Alphabet Inc., Microsoft Corp., and Amazon.com Inc.—who raised their collective 2026 AI capital expenditure budget to $725 billion from a previously estimated $670 billion following earnings reports on April 29. This surge in spending is attributed to rising costs for AI infrastructure components and the expansion of data center capacity, with McKinsey & Co. projecting global AI-powered data center infrastructure capex will reach approximately $7 trillion by 2030. The analysis highlights how specific companies are positioned to benefit from this massive infrastructure buildout, particularly in high-performance and low-power chips and memory components. NVIDIA Corp., a leader in generative AI GPUs, is benefiting from higher shipments of Blackwell GPU computing platforms and has unveiled the new Vera Rubin AI superchip at CES in Las Vegas in January, which delivers 10 times more performance per watt than its predecessor; shipments for Vera Rubin are expected to begin in the second half of 2026, with a roadmap for Rubin Ultra in late 2027 and Feynman AI chips in 2028. Broadcom Inc. is also experiencing strong momentum due to growth in AI semiconductors and custom accelerators, bolstered by expanded deals with Google and Anthropic, while Micron Technology Inc. is gaining from record sales in the data center market driven by high-bandwidth memory (HBM) demand and accelerating adoption of AI servers requiring more memory than traditional systems. Additionally, Credo Technology Group Holding Ltd., Western Digital Corp., Seagate Technology Holdings plc, and Vertiv Holdings Co. are noted for their roles in networking and storage solutions essential for the AI-driven data economy. Credo sees increased demand from both traditional hyperscalers and neocloud providers for its Active Electrical Cables business. Western Digital is witnessing strong execution with intensified cloud and AI demand, supported by close collaboration with hyperscalers to deliver high-capacity hard disk drives, while Seagate maintains a large backlog through 2026 for nearline production with visibility extending to 2027, leveraging its strength in advancing aerial density and HAMR drives. The article concludes with Zacks Equity Research rankings, assigning a "Strong Buy" (#1) status to Broadcom, Credo Technology, and Micron, a "Buy" (#2) to NVIDIA, and a "Hold" (#3) to Western Digital, reflecting their respective positions in the expanding AI infrastructure landscape.