NVIDIA’s (NVDA) blowout earnings and guidance – expected 70% revenue growth in 2028 –prove the AI boom is still booming up and down the stack, from energy to data centers. Today I’ll show you two AI memory stocks with huge potential.
Relentless Institutional Support
This is very much a pick and axe story. As AI is deployed, more high-bandwidth memory is required. The winners are the ones receiving institutional support.
Right now, Micron (MU) is the poster child for relentless institutional support. The company builds memory for AI processors and sports a $1 trillion market capitalization.
Memory needs have only increased, and yet the stock has been range-bound:
But that 5.91X forward P/E ratio is incredible. It’s one of the cheapest stocks in the market and is projected for huge per-share earnings growth – from $73.23 this year to almost $170 in 2028.
No wonder it’s been an institutional darling.
The blue bars below on the right highlight the non-stop outlier inflow signals responsible for MU’s amazing performance:
There is no mistaking when institutions get behind a stock – the share price flies higher.
A second AI memory stock with huge potential is Western Digital (WDC). It’s a $170 billion market cap company focused on mass storage like hard drives.
On its last earnings call, the company cited how physical AI, agentic AI, and synthetic data workloads will drive storage demand beyond 2027. Still, shares have stagnated:
When you consider the latest fundamentals, shares not going higher is confusing.
In 2027, revenues are expected to hit $19.1 billion, with over $8 billion of that being profit. And in 2029, it’s $31.9 billion and $16.7 billion for revenue and net income, respectively.
Institutions often move before the masses. That seems to have happened with WDC:
Big Money was ahead of the memory and storage bottleneck. The flows find the outliers early.
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Disclosure: at the time of publication, the author holds no positions in MU or WDC.
