Prediction: These 3 Artificial Intelligence (AI) Stocks Will Rise More than 30% Before 2026 Is Over
Keithen Drury, The Motley Fool
Sat, August 15, 2026 at 5:35 PM GMT+5:30
4 min read
- NVDA
-0.06% - MU
+2.30% - SNDK
+7.39%
Before 2026 is over, I think a handful of artificial intelligence (AI)-related stocks will have a very strong finish to the year. On my short list of AI stocks that can rise 30% or more to finish 2026 are Nvidia (NASDAQ: NVDA), MicronTechnology (NASDAQ: MU), and Sandisk(NASDAQ: SNDK). These three stocks are also among my top picks for 2027, but I think they will get a head start and rally to close out the year
If you’ve missed out on this exciting trio, it’s not too late, and investors should consider scooping them up now to take full advantage of their relatively cheap valuations
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia’s valuation is cheap compared to its recent history
Although some investors are concerned about rising competitors, Nvidia is still the king of AI investing. It sells far more computing units than its competitors combined, and it’s still the industry-standard computing unit that AI firms use widely. It’s also launching its latest chip architecture generation, Vera Rubin, at the end of the year, and the results from these computing units will likely prove that Nvidia still deserves its ranking as the top hardware producer
However, the market doesn’t seem to share that sentiment at the moment. While several of Nvidia’s peers trade in the mid-30s or higher for a forward price-to-earnings (P/E) ratio, Nvidia is valued far cheaper at 25 times forward earnings
Historically, Nvidia has traded at over 35 times forward earnings in the second half of the year, but that hasn’t happened this year despite most investors projecting that Nvidia will have a strong 2027. Wall Street analysts project 43% revenue growth next year, and earnings per share to rise from $9.00 to $12.89
That leaves plenty of room for the stock to rally, and I wouldn’t be surprised to see it rally 30% or more to close out 2026
Sandisk and Micron both benefit from supply shortages
Sandisk and Micron are in the same boat, as they’re both memory chip producers. Demand for memory chips has exploded thanks to the AI build-out, and memory chip production capacity is widely recognized as the current bottleneck
Due to a shortage of supply, memory chip prices have increased dramatically. Sandisk noted in its latest quarterly results that two-thirds of its incredible 372% year-over-year growth came from price increases, while the other third came from rising output
