Prediction: This Artificial Intelligence (AI) Stock Will Outperform Alphabet in 2026

Artificial quality (AI) has been a large catalyst for Alphabet over the past mates of years, arsenic the company's chatbot, Google Gemini, has gained popularity and arsenic it invests heavy successful caller AI information infrastructure.

But 1 company, Micron Technology (NASDAQ: MU), is reaping adjacent much rewards from AI than Alphabet and could outperform the tech elephantine this year. Here's why.

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Alphabet has gained a batch of crushed successful the AI contention lately, particularly fixed that Gemini present has 750 cardinal monthly progressive users -- a astir 88% summation from conscionable 9 months ago. And it's not conscionable that Gemini is popular. The institution said that successful the 4th fourth of 2025, gross from products built connected its generative AI models grew by astir 400% twelvemonth implicit year.

And much AI wins are apt connected the way. Alphabet precocious entered into a collaboration with Apple, successful which the iPhone shaper volition reportedly wage Alphabet $1 cardinal a twelvemonth to usage Gemini arsenic the underlying exemplary for the latest iteration of Siri.

Alphabet benefits from artificial quality mostly done its Google Cloud services, and its fourth-quarter results showed conscionable however good this conception is doing, with unreality income rising 48% to $17.7 billion.

As bully arsenic Alphabet has been doing implicit the past year, Micron Technology has it bushed -- and the signifier volition apt proceed this year. Micron makes representation chips that are a captious portion of AI information centers, and request has been disconnected the charts recently.

Micron's Chief Business Officer, Sumit Sadana, precocious said that it was "sold out" of representation for 2026 -- and that was before Microsoft, Meta Platforms, Alphabet, and Amazon said they would summation their superior expenditure spending (mostly for information halfway infrastructure) to up to $650 cardinal this year.

To guarantee that it tin conscionable the demand, Micron volition walk $200 cardinal to physique caller manufacturing facilities crossed the U.S., with the factories coming online implicit the adjacent respective years. And it should assistance the institution physique connected its existent success. Micron's income spiked 56% to $13.6 cardinal successful the archetypal 4th of fiscal 2026, and non-GAAP (adjusted) net surged 167% to $4.78 per share. Analysts' statement estimates are for Micron's income to more than double from 2025 and scope $97.6 cardinal successful 2027.

With large tech companies similar Alphabet, Meta, Microsoft, and others competing for the apical spot successful AI, Micron is good positioned to proceed benefiting from their aggravated request for representation demand, giving Micron's banal the imaginable to outpace Alphabet shares this year.