Overlooked yet Profitable: Two Artificial Intelligence (AI) Shares Suitable for Long-term Investments

Overlooked yet Profitable: Two Artificial Intelligence (AI) Shares Suitable for Long-term Investments

In the rapidly evolving landscape of artificial intelligence (AI), two semiconductor giants - Marvell Technology and Micron Technology - are poised to reap substantial benefits. Both companies have unique roles and growth potential in the AI market, driven by the expanding demand for AI infrastructure, data center processors, and advanced memory technologies.

Marvell Technology: AI Growth Potential

Marvell, with its portfolio centred around semiconductors for data infrastructure, including networking and storage, stands to capitalize on the AI-driven expansion in data centers and edge computing. The AI era is projected to cause exponential growth in the semiconductor industry, becoming a trillion-dollar market by 2030, fuelled by AI chip demand, edge computing, and next-gen 5G/6G infrastructure development from 2025 to 2035.

Market drivers such as AI chip demand and edge computing (expected to grow particularly from 2026-2030) create opportunities where Marvell’s networking and ASIC chip solutions are crucial. Although no direct financial data for Marvell's AI segment is available, the company’s focus on technology leadership and innovation for next-gen platforms aligns with the AI market's direction of needing high-performance, specialized semiconductors, suggesting strong structural growth potential aligned with the data center and communication infrastructure growth.

Micron Technology: AI Growth Potential

Micron, specializing in memory and storage solutions, plays a critical role in AI workloads, particularly in high-bandwidth memory (HBM) used in GPUs and AI accelerators for training and inference in data centers. The semiconductor device market is being reshaped by demand for AI accelerators with advanced memory stacks (HBM), with prices rising due to strong demand and constrained supply, indicating a durable shift toward bandwidth-bound architectures.

Micron stands to benefit from this strong demand for AI memory technologies, including DRAM and NAND, as data centers and cloud providers ramp AI compute capacity. Micron’s innovation in memory can secure a competitive foothold in the expanding AI accelerator market. Given that AI workloads drive demand for specialized memory and storage, Micron's relevance in this vertical is important, as these components are essential for AI model training and inference efficiency.

Market Context and Outlook

| Aspect | Marvell Technology | Micron Technology | |--------|--------------------|-------------------| | Core AI Market Role | Networking, storage, and ASIC semiconductors for data centers and edge infrastructure | Memory and storage solutions (e.g., DRAM, HBM, NAND) essential for AI accelerators | | Growth Drivers | AI chip demand; edge computing; 5G/6G infrastructure; data center expansion | Demand for AI accelerators; high-bandwidth memory; generative AI training/inference workloads | | Industry Growth Rates | Semiconductor market CAGR ~6.25% to 2030; AI chip demand structural growth 2025-2030 | Semiconductor device market CAGR ~6.25%; data center processor market CAGR 7.7%, GPUs +12.5% CAGR for AI | | Strategic Position | Innovation and technology leadership in data infrastructure | Essential memory technology enabling AI hardware performance |

Summary

Marvell Technology is well-positioned to capture structural AI growth through its leading semiconductor solutions for networking and data infrastructure that support growing AI workloads and edge computing needs. Micron Technology is critical to AI hardware due to its cutting-edge memory solutions, which are in high demand as AI accelerators and data centers expand. The memory and storage technology segment is a pivotal component of AI computing growth.

Both companies benefit from the broader semiconductor industry boom driven by AI, which expects robust growth through 2030 and beyond, though Micron’s role is more directly linked to AI chip performance through memory, while Marvell’s growth ties to data center and communication infrastructure semiconductors.

With the current market conditions and forecasts, both Marvell and Micron have strong growth potential in the AI market, tailored to their specialized semiconductor niches essential to AI hardware performance and infrastructure expansion.

Micron Technology has seen growth due to the deployment of its products in AI data centers. In the first half of the fiscal year, Micron has swung to a GAAP profit of $3.08 per share from a loss of $0.40 per share in the year-ago period. High-bandwidth memory (HBM) manufactured by Micron is crucial for AI accelerators like GPUs and custom processors due to its high-speed data transfer and power efficiency. Consensus estimates expect Micron to deliver a 439% jump in adjusted earnings this year to $7 per share, followed by a 58% increase next year. Micron's revenue in the first six months of the current fiscal year has increased by 59% from the year-ago period.

1. Investing in Marvell Technology could be valuable for those interested in the AI market, as its semiconductor solutions, including networking and data infrastructure, are projected to see structural growth due to the expanding AI chip demand and edge computing.
2. Finance experts might consider Micron Technology as a potentially lucrative investment given its role in AI hardware, specifically its memory and storage solutions, which are in high demand and essential for AI accelerators.
3. The finance industry should pay close attention to the stock-market performance of both Marvell Technology and Micron Technology, as market drivers such as AI chip demand, edge computing, and the development of next-gen 5G/6G infrastructure are expected to fuel growth in the semiconductor industry, becoming a trillion-dollar market by 2030.
4. Technology companies looking at artificial intelligence should keep an eye on the advancements in technology, particularly AI, in both Marvell Technology and Micron Technology. Their unique roles and growth potential in the AI market, driven by the expanding demand for AI infrastructure, data center processors, and advanced memory technologies, make them key players in the AI landscape.

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