Two Outstanding Semiconductor Shares (Besides Nvidia) Worth Investing Heavily in by 2025

Two Outstanding Semiconductor Shares (Besides Nvidia) Worth Investing Heavily in by 2025

In the tech world of 2025, Nvidia's (NASDAQ: NVDA) stock soared an impressive 171%, making it one of the year's top performers. This surge was fueled by skyrocketing demand for its top-tier data center graphics processing units (GPUs), which are indispensable for developing advanced artificial intelligence (AI).

However, the AI hardware race is heating up, and other notable players, such as Advanced Micro Devices (AMD -4.99%) and Micron Technology (MU -6.03%), are also worth considering. Despite delivering impressive financial results due to AI chip sales, their stock prices have taken a hit, making them potential bargains for 2026.

Reasons to Bet on AMD

AMD has built a strong reputation in the consumer electronics sector, supplying powerful chips for everything from Tesla's electric vehicles to Microsoft's gaming consoles. However, the company is rising to the challenge posed by Nvidia in the data center market with its own range of AI GPUs.

The MI300X was introduced in late 2023 and has already won over significant AI clients, such as Microsoft, Oracle, and Meta Platforms. AMD is now in the process of ramping up its innovation, unveiling a new GPU architecture called Compute DNA (CDNA) 4, which promises a substantial 35x performance increase over its previous generation.

This technological leap will open the door for even more advanced AI models and has already led AMD to accelerate its production schedule. The MI350 is set to send samples to customers this quarter and will ramp up production in the middle of the year.

Moreover, AMD's Ryzen AI 300 Series chips are currently the best on the market for PCs, with over 100 commercial platforms slated to use them in 2026. This continued dominance in the PC segment, coupled with a 94% increase in data center revenue to $12.6 billion (including $5 billion in GPU sales) and a 52% jump in revenue from the client segment, makes AMD a tempting buy.

Why Micron Technology Merits Your Attention

Micron is an essential supplier of memory chips for various applications, including AI workloads in the data center. Its high-bandwidth memory (HBM) solutions offer 50% more capacity and consume 30% less energy than the competition, making them a favorite for heavy-duty AI processors. Nvidia's new Blackwell GB200 GPU, the most advanced AI chip on the market, relies on Micron's HBM3E technology.

This high demand has left Micron's data center memory solutions sold out until 2026, and the company is already working on an advanced HBM4E solution to meet future needs. The growing demand for AI infrastructure is only going to boost Micron's addressable market, which is projected to reach $100 billion per year by 2030.

Micron's first quarter (ended Nov. 28) revenue surged 84% year over year, contributing to a 400% increase in data center revenue to $4.4 billion. Although Micron's market-leading AI memory solutions will undoubtedly continue their upward trajectory, it's the company's foray into the dynamic consumer market that holds the key to its long-term success.

PCs and smartphones are gradually adopting AI processors, requiring increasingly larger memory capacities. Micron is well-positioned to capitalize on this trend, delivering AI-optimized memory solutions to top tech manufacturers like HP, Microsoft, and Lenovo.

In conclusion, while Nvidia is unquestionably a leader in AI, AMD and Micron Technology offer attractive growth opportunities, thanks to their strategic positions and cost advantages. Their stocks are currently trading at lower valuations due to market perception and cyclical industry challenges. But as the AI market continues to expand, these factors are likely to shift, making these two stocks promising investment opportunities.

1. Despite their impressive financial results driven by AI chip sales, the stock prices of AMD and Micron Technology have dropped, making them potential bargains for 2026 in the context of the AI hardware race.
2. AMD's Ryzen AI 300 Series chips are currently the best on the market for PCs, with over 100 commercial platforms planning to use them in 2026, suggesting strong demand for AMD's products in the PC segment.
3. Micron's high-bandwidth memory (HBM) solutions are in high demand for heavy-duty AI processors due to their 50% more capacity and 30% less energy consumption, and its advanced HBM4E solution is already in development to meet future needs in the AI market.
4. The growing demand for AI infrastructure is expected to boost Micron's addressable market, projected to reach $100 billion per year by 2030, indicating significant investment potential in Micron Technology related to AI.

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