TLDR
- Micron (MU) and Palantir (PLTR) have each gained over 400% in two years, outpacing Nvidia’s 153% gain
- Micron’s HBM chips are in high demand for AI data centers, with supply constraints boosting pricing power
- Micron expects Q2 FY2026 revenues between $18.3B–$19.1B, with earnings forecast to grow 300.7% this year
- Palantir’s AI Platform (AIP) drove U.S. commercial revenue up 137% YoY; full-year 2026 revenue expected to exceed $7B
- Both stocks carry strong analyst ratings: Micron at Zacks Rank #1 (Strong Buy), Palantir at Rank #2 (Buy)
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Nvidia is often held up as the gold standard of AI investing. But two other stocks have quietly outpaced it over the past two years.
Micron Technology (MU) and Palantir Technologies (PLTR) have gained 405.9% and 412.6% respectively since early 2024. Nvidia gained 153% over the same period.
Both companies are now seen by analysts as capable of sustaining strong growth, driven by AI demand across data centers and enterprise software.
Micron’s HBM Chips Are in Short Supply
Micron makes high-bandwidth memory (HBM) chips, which are a core component in AI servers and data centers. Demand has surged as tech companies build out AI infrastructure at a rapid pace.
Supply has not kept up with that demand. That imbalance has given Micron more pricing power and pushed its profit margins higher.
Micron CEO Sanjay Mehrotra has said the tight supply environment is expected to continue supporting the company’s performance. The company projects Q2 FY2026 revenue of $18.3B–$19.1B, up from $13.64B in Q1.
Earnings are forecast to grow 300.7% in the current fiscal year, with consensus estimates putting earnings per share at $33.73.
Micron also sells HBM chips to AMD, not just Nvidia. That broad customer base reduces its reliance on any single buyer.
Market research firm TrendForce expects the overall memory market to grow from $235 billion in 2025 to $552 billion in 2026, and nearly $843 billion by 2027.
Micron currently trades at 13 times forward earnings, compared to 25 times for the Nasdaq-100. That gap suggests room for the stock to re-rate higher as earnings grow.
Palantir’s AI Platform Keeps Winning Government and Commercial Deals
Palantir’s main products — Gotham, Foundry, and its Artificial Intelligence Platform (AIP) — face limited direct competition. AIP allows companies and agencies to deploy AI and large language models inside complex data systems.
U.S. commercial revenue for Palantir jumped 137% year over year in Q4 2025, reaching $507 million. Government revenue in the same period hit $570 million, up 66% year over year.
Palantir’s remaining deal value from U.S. commercial clients stood at $4.38 billion in Q4 2025, up 145% year over year. That figure gives visibility into future revenue.
The company expects full-year 2026 revenue to more than double, from $3.32 billion in 2025 to between $7.182B and $7.198B.
Palantir also posted a Rule of 40 score of 127%, well above the 40% threshold that signals a healthy, scalable software business.
Zacks rates Micron a Rank #1 (Strong Buy) and Palantir a Rank #2 (Buy).
Micron’s projected earnings growth rate for the next fiscal year stands at 78.7%.
