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 (NVDA -0.06%), Micron Technology (MU +2.30%), and Sandisk (SNDK +7.40%). 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.
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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.
NASDAQ: NVDA
Key Data Points
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.
Data by YCharts.
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.
Each of these stocks was a fantastic performer in the first half of 2026, and then investors took profits. However, the market has seen these two rally in recent weeks.
Data by YCharts.
I think this is the beginning of something new, as all signs point to incredible demand for at least the next year and a half. Micron has told investors that the "tightness" in the memory chip marketplace won't subside until at least 2028, when more production capacity is online. That leaves plenty of time for these stocks to rally to new all-time highs, especially after 2027 capital expenditure projections get released.
NASDAQ: SNDK
Key Data Points
Nvidia has already informed its investors that they expect over $1 trillion in data center capital expenditures in 2027, up from the projected $650 billion in 2026. That's a big jump and will benefit all three companies on this list. Investors have already seen some AI hyperscalers increase capital expenditure guidance due to rising memory chip prices, and it's unlikely that those conditions will change anytime soon.
As a result, I wouldn't be surprised to see these two rally to end the year and potentially reach new all-time highs. That would easily surpass the 30% gain prediction, making these two great buys right now.
