AI Research
1 Incredible Artificial Intelligence (AI) Chip Stock to Buy Before It Soars 85% (Hint: Not Nvidia), According to a Select Wall Street Analyst

This important component maker is poised to take share of a growing market.
Big tech companies are spending hundreds of billions of dollars on chips and equipment to outfit their growing data centers to continue pushing the potential of generative AI. Total infrastructure spending from the top 10 AI tech companies could climb from $435 billion last year to over $1 trillion by 2028, according to estimates from Dell’Oro. In other words, there’s still a lot of room for AI chip stocks to keep growing.
Perhaps the most important component of any data center focused on AI training and inference is the GPU cluster. Bigger clusters of more powerful GPUs are capable of training bigger models faster. Nvidia has established itself as the leading GPU maker, and its revenue and profits have skyrocketed as hyperscalers snatch up its chips as fast as it can produce them.
But GPU makers aren’t the only chipmakers benefiting from the rapid growth in AI spending. There are a lot of different components that go into data centers. As demand continues to grow over the next few years, one chipmaker’s stock could climb up to 85% from its price as of this writing through the next 12 months, according to one Wall Street analyst.
Here’s what investors need to know.
Image source: Getty Images.
Don’t forget about this component
One of the most expensive parts of building a GPU, which is more than just a piece of silicon these days, is the high-bandwidth memory, or HBM. The most advanced GPUs process tons of data every second. But in order to process that data, the unit must have a way to access the data quickly. Traditional memory components quickly became a bottleneck as the processing power of GPUs increased. As such, demand for HBM chips has exploded alongside the growing demand for the most advanced GPUs.
There are only a few chipmakers producing HBM chips. The leader in the market is SK Hynix, which established a strong relationship with Nvidia. But another memory chip maker, Micron Technology (MU 2.70%), is poised to take share from the market leader.
Micron was late to HBM, but now it’s ramping up development on its latest generation HBM3E 12H product, which it expects to be its biggest source of HBM shipments in the current quarter. It earned a big design win with Advanced Micro Devices‘ latest GPU, the MI355X. Analysts expect AMD’s latest chip to compete for more share of data center spending against Nvidia, which bodes well for Micron as well. Overall, Micron expects its share of the HBM market to grow to the same level as its total DRAM (general memory chips) market share, about 25%, at some point in the second half of this year. That’s pretty rapid progress after starting from a near standstill a few years ago.
Importantly, Micron’s next-generation HBM4 progress is going well, too, with performance 60% higher than its HBM3E chips with 20% less power consumption. Management says it’s delivered samples to customers, and it expects to ramp up volume production next year.
The early results are evident in Micron’s financials. HBM revenue grew 50% sequentially in its most recent quarter. As a result, total revenue from DRAM sales (of which HBM is a part) climbed 51% year over year. Management expects the ramp in HBM3E to push its gross margin higher this quarter, reaching 42%, up from 39% in its most recent quarter.
While HBM is the driving force behind Micron’s recent results, it’s not the only factor pushing demand for Micron’s chips. Device makers are also in need of more traditional memory chips from Micron as it’s also an important component for on-device AI capabilities. Everything from PCs and smartphones to automobiles with advanced computing capabilities (like self-driving) need more powerful memory chips. On-device AI capabilities may drive significant smartphone upgrades over the next few years, representing another potential catalyst for Micron.
The 80% upside in the stock
Micron is making strong progress in the HBM market, and that led Rosenblatt Securities to slap a $200 price target on the stock following its third-quarter earnings report in June. The key factor behind the analyst’s Street-high price target, which is an 80% jump from today’s price, is the capacity constraints on the market.
SK Hynix notably said it had already sold out its entire capacity for 2025 by the end of the first quarter and it expected to finalize its 2026 volume within the first half of the year.
“With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron’s income model to all-time highs,” Rosenblatt’s Kevin Cassidy wrote in an investor note. He find’s Micron’s current valuation, less than 14 times forward earnings, as extremely attractive, especially given the strength of its balance sheet and potential earnings leverage.
Before investors run out and buy the stock, though, there’s an important risk to consider with Micron. It’s an extremely cyclical stock.
Since it manufactures its chips itself, it has significant capital expenditures for equipment and capacity. A downturn in demand would not only hurt volume but pricing as well, because most of its products aren’t very differentiated from SK Hynix or other competitors. That would weigh heavily on earnings. Micron saw a significant shock to its earnings in 2023, as inventory levels rose and demand from China vanished.
That said, the strong expected growth in AI spending could provide a huge boost to Micron’s revenue and profit margins over the next few years, as long as it’s able to maintain leading-edge technology with HBM. That could mean an extended earnings cycle with very strong earnings growth for the next few years. At some point, however, Micron will see a big drop in demand and earnings will severely suffer. But the long-term trends favor growing demand for memory both in data centers and consumer devices and automobiles.
As such, Micron is a great value at today’s price, especially for investors looking for a way to invest in the growing spending of the hyperscalers without paying up for expensive GPU chipmakers like Nvidia and AMD.
AI Research
AI to reshape India’s roads? Artificial intelligence can take the wheel to fix highways before they break, ETInfra

In India, a pothole is rarely just a pothole. It is a metaphor, a mood and sometimes, a meme. It is the reason your cab driver mutters about karma and your startup founder misses a pitch meeting because the expressway has turned into a swimming pool. But what if roads could detect their own distress, predict failures before they happen, and even suggest how to fix them?
That is not science-fiction but the emerging reality of AI-powered infrastructure.
According to KPMG’s 2025 report AI-powered road infrastructure transformation- Roads 2047, artificial intelligence is slowly reshaping how India builds, maintains, and governs its roads. From digital twins that simulate entire highways to predictive algorithms that flag out structural fatigue, the country’s infrastructure is beginning to show signs of cognition.
From concrete to cognition
India’s road network spans over 6.3 million kilometers – second only to the United States. As per KPMG, AI is now being positioned not just as a tool but as a transformational layer. Technologies like Geographic Information System (GIS), Building Informational Modelling (BIM) and sensor fusion are enabling digital twins – virtual replicas of physical assets that allow engineers to simulate stress, traffic and weather impact in real time. The National Highway Authority of India (NHAI) has already integrated AI into its Project Management Information System (PMIS), using machine learning to audit construction quality and flag anomalies.
Autonomous infrastructure in action
Across urban India, infrastructure is beginning to self-monitor. Pune’s Intelligent Traffic Management System (ITMS) and Bengaluru’s adaptive traffic control systems are early examples of AI-driven urban mobility.
Meanwhile, AI-MC, launched by the Ministry of Road Transport and Highways (MoRTH), uses GPS-enabled compactors and drone-based pavement surveys to optimise road construction.
Beyond cities, state-level initiatives are also embracing AI for infrastructure monitoring. As reported by ETInfra earlier, Bihar’s State Bridge Management & Maintenance Policy, 2025 employs AI and machine learning for digital audits of bridges and culverts. Using sensors, drones, and 3D digital twins, the state has surveyed over 12,000 culverts and 743 bridges, identifying damaged structures for repair or reconstruction. IIT Patna and Delhi have been engaged for third-party audits, showing how AI can extend beyond roads to critical bridge infrastructure in both urban and rural contexts.
While these examples demonstrate the potential of AI-powered maintenance, challenges remain. Predictive maintenance, KPMG notes, could reduce lifecycle costs by up to 30 per cent and improve asset longevity, but much of rural India—nearly 70 per cent of the network—still relies on manual inspections and paper-based reporting.
Governance and the algorithm
India’s road safety crisis is staggering: over 1.5 lakh deaths annually. AI could be a game-changer. KPMG estimates that intelligent systems can reduce emergency response times by 60 per cent, and improve traffic efficiency by 30 per cent. AI also supports ESG goals— enabling carbon modeling, EV corridor planning, and sustainable design.
But technology alone won’t fix systemic gaps. The promise of AI hinges on institutional readiness – spanning urban planning, enforcement, and civic engagement.
While NITI Aayog has outlined a national AI strategy, and MoRTH has initiated digital reforms, state-level adoption remains fragmented. Some states have set up AI cells within their PWDs; others lack the technical capacity or policy mandate.
KPMG calls for a unified governance framework — one that enables interoperability, safeguards data, and fosters public-private partnerships. Without it, India risks building smart systems on shaky foundations.
As India looks towards 2047, the road ahead is both digital and political. And if AI can help us listen to our roads, perhaps we’ll finally learn to fix them before they speak in potholes.
AI Research
Mistral AI Nears Close of Funding Round Lifting Valuation to $14B

Artificial intelligence (AI) startup Mistral AI is reportedly nearing the close of a funding round in which it would raise €2 billion (about $2.3 billion) and be valued at €12 billion (about $14 billion).
AI Research
PPS Weighs Artificial Intelligence Policy

Portland Public Schools folded some guidance on artificial intelligence into its district technology policy for students and staff over the summer, though some district officials say the work is far from complete.
The guidelines permit certain district-approved AI tools “to help with administrative tasks, lesson planning, and personalized learning” but require staff to review AI-generated content, check accuracy, and take personal responsibility for any content generated.
The new policy also warns against inputting personal student information into tools, and encourages users to think about inherent bias within such systems. But it’s still a far cry from a specific AI policy, which would have to go through the Portland School Board.
Part of the reason is because AI is such an “active landscape,” says Liz Large, a contracted legal adviser for the district. “The policymaking process as it should is deliberative and takes time,” Large says. “This was the first shot at it…there’s a lot of work [to do].”
PPS, like many school districts nationwide, is continuing to explore how to fold artificial intelligence into learning, but not without controversy. AsThe Oregonian reported in August, the district is entering a partnership with Lumi Story AI, a chatbot that helps older students craft their own stories with a focus on comics and graphic novels (the pilot is offered at some middle and high schools).
There’s also concern from the Portland Association of Teachers. “PAT believes students learn best from humans, instead of AI,” PAT president Angela Bonilla said in an Aug. 26 video. “PAT believes that students deserve to learn the truth from humans and adults they trust and care about.”
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