Undervalued AI Stocks With Significant Growth Potential: Micron and Qualcomm Still Offer Strong Value

As we move through 2026, the technology sector continues to benefit from the explosive growth in artificial intelligence adoption. While many cheap AI stocks have already seen substantial price appreciation, a closer look reveals several semiconductor companies remain undervalued relative to their long-term opportunities. Two standouts—Micron Technology and Qualcomm—are positioned as compelling plays for investors seeking exposure to the AI infrastructure buildout at reasonable valuations.

The AI market opportunity has barely scratched the surface of its potential. Grand View Research projects the global artificial intelligence market will expand from $390.9 billion in 2025 to $3.5 trillion by 2033. This dramatic growth trajectory underscores that AI infrastructure demand is still in its infancy, creating a multi-year tailwind for semiconductor companies that power these systems. Unlike past technology cycles driven by short-term inventory swings, today’s AI buildout is underpinned by hyperscaler capital spending commitments, lending stability and visibility to supply demand.

Micron Technology: The Undervalued Memory Provider Behind AI Systems

Micron Technology has emerged as a critical beneficiary of AI infrastructure spending, yet remains reasonably priced compared to its peers. The company’s first quarter of fiscal 2026 (ending November 27, 2025) showcased impressive operational momentum, with revenue reaching $13.6 billion—a 56% year-over-year increase. More importantly, demand for its core memory products—DRAM, NAND, and high-bandwidth memory (HBM)—far exceeds available supply.

The current environment represents a fundamental shift in the memory semiconductor landscape. HBM, essential for running modern AI workloads, is seeing unmet demand that has allowed Micron to exercise significant pricing power and expand profit margins. Management has noted that HBM production for 2026 is fully committed, with both volumes and pricing locked in through customer contracts. This contractual visibility provides rare revenue certainty compared to historical memory cycles.

Goldman Sachs estimates that hyperscaler companies will deploy nearly $527 billion in AI-related capital expenditures during 2026 alone. Each successive generation of AI chips requires substantially more performance memory—including advanced HBM and high-capacity storage solutions—to handle increasing AI workload complexity. Micron sits at the center of this spending wave.

From a financial perspective, the company demonstrates disciplined execution. In the most recent quarter, Micron generated a nearly 30% free cash flow margin while simultaneously reducing debt by $2.7 billion. Trading at 8.6 times forward earnings, the stock appears undervalued considering Micron’s market-leading position in critical AI memory technologies. For investors seeking cheap AI stocks with genuine structural demand, Micron warrants serious consideration.

Qualcomm: A Diversified Semiconductor Play on Affordable Terms

Qualcomm has evolved into something far beyond a mobile handset supplier—it’s now a diversified artificial intelligence semiconductor company with exposure to multiple high-growth markets. The company delivered $44 billion in non-GAAP revenue and generated $12.8 billion in free cash flow during fiscal 2025 (ending September 28, 2025), while maintaining healthy operating margins that provide financial flexibility for strategic investments.

The AI PC upgrade cycle represents a significant near-term growth driver for Qualcomm. The company plans to commercialize approximately 150 Snapdragon-powered AI PC designs through 2026. By extending the Snapdragon X2 Plus processor family to more affordable price points, Qualcomm is helping move AI-capable personal computers beyond early adopters into mainstream volume adoption. This democratization of AI PC technology could represent a massive revenue opportunity.

Beyond PCs, Qualcomm is making aggressive moves in automotive semiconductors, a segment that generated over $1 billion in fourth-quarter revenue alone. The company is also expanding its presence in AI data center deployments, with plans to launch a 200-megawatt data center infrastructure project in 2026. This portfolio diversity mitigates risk while providing exposure to multiple secular AI trends.

At a valuation of roughly 12.8 times forward earnings, Qualcomm trades at reasonable multiples given its growth trajectory and market positioning. For investors seeking undervalued AI stocks with exposure across multiple end markets—PCs, automotive, and data centers—Qualcomm presents an attractive entry point.

Evaluating Value in the AI Infrastructure Boom

The semiconductor industry’s role in powering AI systems remains underpenetrated by mainstream investors. While headline AI stocks have surged, companies like Micron and Qualcomm offer exposure to the foundational infrastructure layer driving this transformation. Both trade at valuations that appear reasonable relative to multi-year AI infrastructure spending forecasts.

Investors often overlook that the most durable winners in technology cycles are frequently the infrastructure providers rather than the application companies. In the current AI supercycle, memory and semiconductor suppliers like Micron and Qualcomm are capturing significant value while remaining undervalued. With demonstrated strong financial metrics, contractual demand visibility, and exposure to secular AI adoption trends, these cheap AI stocks merit consideration for portfolios seeking both growth and reasonable entry valuations during this pivotal technology transition.