Micron and Broadcom: 2 Critical AI Infrastructure Enablers
Several stocks have seen increased interest as of late, including Micron MU and Broadcom AVGO. Given the recent spike in interest, let’s take a closer look at how each presently stacks up and what’s been driving the positivity behind each.
Micron’s Critical AI Role
Micron is a world leader in memory and storage solutions. Shares have been red hot as its products become critical in data centers, which require massive, high-speed capacity to handle scaling AI workloads.
Micron’s sales have risen sharply over recent periods, with the company posting record quarterly revenue in four consecutive quarters. The sales surge has been led by a favorable demand picture thanks to the AI buildout.
Below is a chart illustrating MU’s quarterly sales over the last decade, with the longer-term timeframe helping show just how outsized growth has been over recent periods.
Image Source: Zacks Investment Research
Micron isn’t just breaking sales records, as it also posted all-time highs across EPS, free cash flow, and its gross margin throughout its latest period.
Tight memory supply and the red-hot demand environment suggest continued momentum in the coming periods, with MU forecasting record results again for its upcoming Q3 results, currently expected in late June. The amplified cash generation also led to a 30% increase in its quarterly dividend, owing to its shareholder-friendly nature.
The company continues to sport a bullish Zacks Rank #1 (Strong Buy), with EPS revisions soaring across the board. The stock has held the coveted #1 ranking since roughly the beginning of September 2025, underscoring the Zacks Rank’s power overall.
Image Source: Zacks Investment Research
The stock overall reflects a high-growth play on the AI buildout, with Zacks Consensus estimates suggesting 200% YoY sales growth on 600% higher earnings in its current fiscal year. Next year’s growth expectations remain robust as well, with FY27 sales expected to climb nearly 60% on 65% earnings growth.
Broadcom Posts Record AI Revenue
Reflecting another critical player of the AI buildout, Broadcom provides custom AI chips and high-speed networking solutions needed to connect massive GPU clusters. The company sports the highly coveted Zacks Rank #1 (Strong Buy) thanks to climbing EPS revisions, with its growth outlook remaining bright amid the favorable environment.
Image Source: Zacks Investment Research
The company has also been long-recognized as a cash-generating machine, with the favorable demand environment brightening the picture nicely. Free cash flow of $8.0 billion grew 33% YoY throughout its 2026 Q1 period, reflecting a quarterly record for the seventh consecutive quarter. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above its forecast and underpinned by strong demand for custom AI accelerators and AI networking
Image Source: Zacks Investment Research
Keep in mind that the company’s strong cash generation has also enabled it to reward its shareholders with growing dividend payouts over its history, currently sporting a 13.1% five-year annualized dividend growth rate. The stock offers a strong blend of high growth and income, attracting both income-focused and growth investors alike.
Bottom Line
Both Micron MU and Broadcom AVGO continue to be major beneficiaries of the AI buildout, with their solutions serving as critical pieces of the overall picture. The pair also both sport Zacks Rank #1 (Strong Buy) ratings thanks to their favorable demand pictures, keeping them as top options for those seeking AI exposure.
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Micron Technology, Inc. (MU): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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