2 AI Memory Stocks with Huge Upside Potential
The memory and storage ramp isn’t slowing anytime soon.
NVIDIA’s blowout earnings reinforce how the AI boom is accelerating.
It is imperative that investors own critical infrastructure leaders.
Today, we’ll unpack 2 AI memory stocks with huge upside potential.
Last night, guidance from NVIDIA shocked everyone. Q3 revenues are slated to reach a staggering $108B +/- 2%, well above the street estimate of $104.8B.
But that wasn’t what got the party started.
For fiscal 2028, they see revenues surging 70%…the street was estimating 44% growth.
This level of acceleration signals that the AI story remains intact.
Focus on the pick and axe stories…
As AI demand explodes, more GPUs are deployed, requiring more HBM (high-bandwidth memory), which keeps memory supplies tight.
The memory bottleneck is here to stay:
And fortunately, we’ve been banging the drum on elite memory and storage stocks since last year.
Whenever you see a massive wave of capital flowing thematically into a select number of stocks, pay attention! That’s the investing greenlight signal.
Today we are going to do 2 things:
First, we’ll dive into 2 top-ranked memory stocks that are egregiously undervalued.
Second, we’ve just released our Frontiers indexes, making it super easy for you to invest alongside the most powerful AI trends in the market.
Let’s now unpack a couple of core names under incredible institutional support…and for good reason.
2 AI Memory Stocks with Huge Upside Potential
Every day, our models cast a wide net on thousands of equities, looking for stocks trading in an unusual way.
The key is to latch onto the handful of stocks seeing this capital influx repeatedly.
Those are the outliers. And our first name is the poster child for relentless institutional support.
Our first AI memory stock to buy for huge potential upside is Micron (MU). The $1 trillion market cap juggernaut builds the memory that feeds AI processors.
HBM and DRAM needs have only accelerated the past year.
Even still, the stock has been range-bound for months. Since the June peak, shares have been in consolidation.
Incredibly, the forward PE has fallen to 5.9X:
This is literally one of the cheapest stocks in the market.
Analysts have boosted Micron’s FY 2027 EPS estimate to over $153, and over $166 for FY 2028:
But what makes Micron have huge upside, is the fact that the average analyst price target sits at $1571. This implies 72% upside to the current share price of $910!
When you couple this information with the fact that Micron has been one of the most accumulated stocks in our data the past year, the bullish case is simple.
The blue bars below on the right highlight the non-stop outlier inflow signals responsible for MU’s breathtaking performance.
Those are every instance when MU appeared on our Outlier 20 report.
Follow the flows.
Our process makes it super easy for you to see tomorrow’s leading stocks in real-time.
Let’s do another.
Our 2nd AI memory stock to buy for huge potential upside is Western Digital (WDC). The $170 billion market cap firm offers mass storage solutions including hard drives.
From Western Digital’s last earnings report, the company cited how physical AI, agentic AI, and synthetic data workloads will become significant storage demand drivers beyond 2027.
Even with this strong outlook, shares have floundered over the last few months.
That’s caused the valuation to become incredibly attractive with the PE sitting at 19.6X:
And let’s dive into this valuation for a second.
In FY 2027, revenues are slated to reach $19.1B with net income to top $8B.
By FY 2029, sales are expected to soar to $31.9B with net income rising to $16.7B.
Few companies have top and bottom-line metrics like these:
The huge upside potential comes from the fact that the consensus price target for Western Digital is $684 per share, implying 57% upside from the current price of $435!
Now for validation, the stock has been under immense institutional buy pressure all year.
NOTE: this surge started well ahead of the memory and storage bottleneck narrative…proving how MoneyFlows spots the biggest opportunities early:
Investing is all about stacking the odds in your favor.
And MoneyFlows has made it easier than ever to invest alongside the biggest themes out there.
Our newly released Frontiers indexes include 11 AI-driven baskets including AI, Robotics, Photonics, Grid & Power, Space, and more.
Below is a snapshot of our AI Outliers Frontier which holds 22 names that are highly ranked in our process and are loved by institutions.
(Our Frontiers indexes do not constitute personalized financial advice. Potential back-tested returns are purely hypothetical)
It’s never been easier to get thematic exposure in the best stocks…validated by the MoneyFlows process.
Our annual PRO subscription now includes access to all 11 Frontiers, and their outlier baskets.
Save time by zeroing on the best stocks in the hottest frontiers.
It’s our biggest enhancement of the year.
If you’re a serious investor or money manager, this is unmatched research!
AND don’t miss my deep dive conversation with Jason Bodner on 3 deep value memory stocks to consider buying. It’s a fun video!