The artificial intelligence (AI) trade has produced many winners, and some of the leaders of this industry still have more room to run. Megacap stocks are in the best position to capitalize on this boom due to their access to capital and ability to integrate AI into their operations.
One of these stocks is still in the middle of a breakout that shows no signs of slowing down. The other two stocks have been sluggish lately but are poised to be some of the top beneficiaries of the AI buildout.
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Micron's memory storage solutions are an AI enabler
The AI buildout needs chipmakers, but those chips also require the memory storage solutions that Micron (MU 2.99%) provides. It's a hardware component that goes inside each chip, similar to the SD cards used in advanced cameras. The growth stock is already up 47% year to date and 320% over the past year, driven by high demand from AI chipmakers serving hyperscalers.
NASDAQ: MU
Key Data Points
Those gains come as Micron's business continues to gain ground and investors realize that the stock has a ridiculously cheap forward P/E ratio compared to its peers. A 57% revenue growth rate and profits nearly tripling in one year were the key highlights from Micron's Q1 FY26 report. That report also provided optimistic guidance, implying Micron will set new sales and profitability records in Q2 FY26.
Micron trades at a forward P/E ratio of 13, well below those of high-growth AI stocks. That valuation gives the company plenty of room to expand, and high financial growth rates will add another catalyst that can help the stock reach new highs.
The memory storage market has a tremendous runway. Grandview Research anticipates a 28.6% compound annual growth rate through 2033. Micron has recognized the opportunity and is shifting away from its consumer segment to prioritize higher-growth and higher-margin AI infrastructure opportunities.
Amazon is a promising AI stock that hasn't received much love lately
Amazon (AMZN 1.43%) has been in a bit of a rut, down by 10% over the past year. Its 25% return over the past five years trails the S&P 500 and most benchmarks. The shocking turn of events for what was once a top-performing growth stock is hard to believe, especially if you look at its financial performance.
NASDAQ: AMZN
Key Data Points
The tech giant hasn't been losing revenue. In fact, its total sales and profits have continued to grow across multiple segments. Even Q4 2025 brought great results, with net sales up by 14% year over year.
Amazon Web Services sales continued to accelerate to levels the company hasn't seen since 2022, and its highly profitable online advertising segment was up by 22% year over year. Net income is also up year over year.
These aren't the results you would expect from a company that has barely exceeded a 20% return over the past five years. The only issue is that Amazon's significant AI investments can hurt profit margins in the short run, but these investments have already translated into higher revenue growth rates.
All this confusion has resulted in a 28 P/E ratio, well below Amazon's historical average. The company's P/E ratio typically hovers in the high 30s to low 50s, and just a few years ago, Amazon traded at a P/E above 100.
If Amazon continues to deliver strong results, it's only a matter of time before the rest of the market notices.
Microsoft is in a deep correction despite strong financials
Microsoft (MSFT 0.36%) is in the same boat as Amazon. It delivered strong results in its Q2 FY26, with revenue up by 17% year over year. The company's cloud computing segment excelled as more companies turn to cloud storage to fuel their AI ambitions.
The tech leader is well diversified in cloud computing, PCs, video games, social media, online advertising, and other industries. Net income also surged by 60% year over year, resulting in a 47.3% net profit margin.
That hasn't been enough for the stock market. Shares are down 17% year to date and remain 25% below all-time highs. Microsoft surpassed a $4 trillion market cap in July 2025 and recently fell below a $3 trillion market cap.
Investors should remain patient with Microsoft stock, as the underlying business continues to perform well. The stock now trades at a 26 P/E ratio despite a long history of a P/E ratio in the 30s.
