Two Top AI Companies to Invest In During This Growth Phase

The U.S. equity market has momentum heading into 2026, with much of the strength driven by artificial intelligence (AI)-related investments. Companies across industries are scaling AI infrastructure and implementations at production levels. Grand View Research projects the global AI market expanding from $390.9 billion in 2025 to $3.5 trillion by 2033, signaling that AI adoption remains in its early innings. Amid this expansion, several AI companies to invest in still offer reasonable valuations relative to their growth potential and could emerge as market leaders as the cycle matures.

Why AI Infrastructure Demand Creates Attractive Investment Opportunities

The current investment environment differs fundamentally from previous technology cycles. Rather than short-term inventory swings, the demand for AI infrastructure is driven by sustained, multi-year buildouts. Goldman Sachs estimates that hyperscaler AI companies will deploy nearly $527 billion in capital expenditures during 2026 alone. This massive deployment translates directly into demand for specialized components, particularly memory and semiconductor solutions.

The early-stage nature of this buildout means companies supplying critical AI infrastructure still have substantial runway ahead. New generations of AI processors require significantly more performance memory—both high-bandwidth memory (HBM) and high-capacity storage—than previous systems. This structural shift creates extended visibility into demand, a stark contrast to previous industry cycles.

Micron: Capitalizing on Memory Demand in AI

Micron Technology (NASDAQ: MU) emerged into 2026 as a clear beneficiary of AI infrastructure deployment. The company reported 56% year-over-year revenue growth, reaching $13.6 billion in its most recent fiscal quarter ending in late November 2025.

The supply-demand dynamic works decisively in Micron’s favor. Its DRAM, NAND, and high-bandwidth memory products are experiencing demand that vastly exceeds current production capacity. Management confirmed that Micron’s HBM output for 2026 is completely allocated through customer contracts, with volumes and pricing already negotiated. This contractual certainty removes typical market volatility and provides clear revenue visibility—a significant advantage over previous memory cycles.

Financially, Micron demonstrates disciplined execution. The company achieved nearly 30% free cash flow margins in its latest quarter while simultaneously reducing debt by $2.7 billion. From a valuation perspective, the stock trades at 8.6 times forward earnings, a relatively modest multiple considering the company’s market leadership position and growth trajectory. The combination of supply constraints, pricing power, margin expansion, and reasonable valuation makes Micron an intriguing opportunity for investors seeking AI companies to invest in.

Qualcomm: Positioning Itself Across Multiple AI Markets

Qualcomm (NASDAQ: QCOM) has positioned itself as a diversified AI semiconductor player, extending far beyond its historical smartphone focus. In fiscal 2025 (ending September 2025), Qualcomm reported non-GAAP revenue of $44 billion alongside $12.8 billion in free cash flow, while maintaining solid operating margins. This financial strength provides the resources to pursue multiple growth vectors simultaneously.

The AI PC upgrade cycle represents a primary opportunity. Qualcomm intends to bring approximately 150 Snapdragon-powered AI PC designs to market through 2026. By introducing the Snapdragon X2 Plus processor family across multiple price points, the company aims to expand AI PC adoption beyond early adopters toward mainstream consumers. This expansion represents a massive untapped market.

Automotive systems constitute another significant opportunity, already generating over $1 billion in quarterly revenue. The company has also entered AI data center markets, announcing plans for a 200-megawatt deployment in 2026. From a valuation standpoint, Qualcomm trades at approximately 12.8 times forward earnings—reasonable for an AI company with exposure to multiple high-growth segments.

The Timeline for AI Company Investment Opportunities

What distinguishes the current environment is the timing and scale. The companies positioned to capture AI infrastructure buildout opportunities are still available at valuations that reflect historical norms rather than peak AI enthusiasm. Both Micron and Qualcomm trade at modest forward multiples despite possessing market-leading positions in high-demand categories.

The supply-demand imbalances, contractual visibility, and multi-year infrastructure deployment cycle suggest that companies providing core AI building blocks could see extended periods of favorable conditions. For investors evaluating which AI companies to invest in, the combination of growth catalysts, reasonable valuations, and visible demand creates a compelling case for consideration during this phase of the market cycle.

The next wave of market leadership may well emerge from companies solving fundamental infrastructure challenges. The valuations currently available suggest patient investors may look back on this period as an attractive entry point.