Two AI Infrastructure Stocks Set to Create Wealth in 2026

The artificial intelligence revolution is reshaping technology stocks in unexpected ways. According to Goldman Sachs analysts, major tech companies will spend more than half a trillion dollars on AI-related infrastructure in 2026 alone. This massive capital influx creates a compelling opportunity for savvy investors—not in the consumer-facing AI software that’s burning billions in losses, but in the pick-and-shovel providers supplying the essential hardware. Two stocks that exemplify this opportunity are Micron Technology (NASDAQ: MU) and Broadcom (NASDAQ: AVGO), both of which offer attractive entry points for those seeking exposure to the AI boom through infrastructure plays.

Big Tech’s Half-Trillion Dollar AI Hardware Spending Spree

The economics of generative AI reveal a stark reality: companies like ChatGPT and Anthropic are facing tens of billions in annual losses, yet the companies supplying their hardware are thriving. This divergence stems from the astronomical cost of AI accelerators, high-bandwidth memory, and networking equipment—all products that data center operators must continually upgrade.

The imbalance between software profitability and hardware demand creates a unique investment thesis. Rather than betting on unprofitable AI software companies, investors can capture outsized returns by positioning themselves in companies that manufacture or design the infrastructure these AI giants depend on. This “follow the spending” approach has proven successful throughout technology history, from the gold rush era (where shovel makers outperformed miners) to the smartphone revolution.

Broadcom: Custom Chips as the Cost-Cutting Answer

Broadcom’s strategic positioning has dramatically improved as AI companies seek alternatives to expensive, general-purpose processors. The company’s application-specific integrated circuits (ASICs)—custom chips tailored to specific workloads—offer customers substantial cost and operational savings compared to buying off-the-shelf hardware.

Recent high-profile partnerships validate this thesis. Broadcom secured a major deal with OpenAI to deploy 10 gigawatts of custom accelerators, signaling that even the largest AI companies prioritize cost efficiency. The company is also a key supplier to Alphabet’s Google, which designs its own Tensor Processing Unit (TPU) to compete directly with Nvidia’s offerings.

The numbers tell the story: Broadcom’s fourth-quarter revenue jumped 28% year-over-year to $18 billion, with AI semiconductor revenue surging 74% driven by custom chip adoption and demand for Ethernet switching equipment. Trading at a forward P/E multiple of 31, the stock commands a premium relative to the broader market—but the valuation reflects genuine competitive advantages and market share capture potential as the AI industry matures and efficiency becomes paramount.

Micron: Riding the Memory Shortage Wave

Micron Technology presents a different but equally compelling opportunity. The company’s fiscal first-quarter results showcased revenue growth of 57% year-over-year, reaching $13.6 billion, primarily driven by cloud data center purchases. This surge reflects the acute memory shortage plaguing the industry, a constraint expected to persist until at least 2027.

Historically, Micron’s stock suffered from the commoditized nature of memory chips—lack of differentiation meant brutal price competition and cyclical booms and busts. The generative AI explosion has upended this dynamic. Memory demand is outpacing supply at an unprecedented rate, giving Micron pricing power and margin expansion it has rarely enjoyed. After climbing over 300% in the past 12 months, the stock continues to appreciate as investors recognize the multi-year tailwind ahead.

The valuation gap is striking. Micron trades at a forward P/E multiple of just 12—a dramatic discount to Nvidia’s 22 and Broadcom’s 31. This discount, combined with projected memory shortages lasting several years, suggests the stock retains substantial room for appreciation. With strong cash generation, Micron can both reinvest in capacity expansion and return capital to shareholders through buyback programs.

Valuation Gap Points to Continued Upside

The valuation disparity between Micron and other AI beneficiaries is difficult to reconcile. Both companies are integral to the AI infrastructure buildout—Micron supplies the memory that powers AI systems, while Broadcom provides custom chips and networking solutions. Yet Micron’s P/E of 12 versus broader market multiples suggests persistent skepticism about the sustainability of its advantages.

Investors familiar with market history recognize this dynamic. When transformative technologies reshape entire industries, the infrastructure enablers often deliver the most reliable returns. Micron’s rock-bottom valuation combined with multi-year supply constraints creates an asymmetric risk-reward profile favoring further gains.

What Investors Should Know

Timing matters when building a portfolio of technology stocks. Both companies benefit from secular tailwinds that should persist for years—memory shortages won’t resolve overnight, and custom chips’ cost advantages ensure continued adoption.

For those seeking exposure to AI infrastructure through publicly traded stocks news rather than speculating on unprofitable software companies, Micron and Broadcom offer concrete business models, proven demand, and attractive valuations. The half-trillion-dollar infrastructure spending cycle is just beginning, and these two companies are positioned to capture disproportionate share of that opportunity. Investors who recognize the shift from consumer-facing AI to infrastructure-centric AI investing may find that the real wealth-building potential lies not in the flashiest AI firms, but in the dependable enablers powering the revolution.