TLDR
- Micron’s quarterly revenue nearly tripled year-over-year in Q2 2026, hitting records across every business unit
- AMD posted record Q4 2025 revenue of $10.3 billion, up 34% year-over-year with a 57% non-GAAP gross margin
- TSMC expects 2026 revenue to grow close to 30% in U.S. dollar terms
- All three companies are tied to AI demand but trade at lower valuations than the biggest AI chip names
- TSMC projects AI accelerator revenue will grow at a mid-40s CAGR over five years starting from 2024
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Micron, AMD and Taiwan Semiconductor Manufacturing are three chipmakers tied directly to the AI boom. Despite strong growth and improving financials, analysts say all three may still be trading below their true value.
The AI hardware buildout has driven demand for memory, processors and advanced chip manufacturing. These three companies sit at different points in that supply chain but share a common thread: fast revenue growth without the premium valuations seen elsewhere in the sector.
Micron: From Memory Maker to AI Infrastructure Play
Micron has shifted from being seen as a cyclical memory company to a key AI supplier.
In its fiscal second quarter of 2026, revenue nearly tripled compared to a year earlier. The company hit record levels across DRAM, NAND, HBM and every business unit.
Gross margins also jumped sharply. Micron said its fiscal third-quarter guidance would exceed the company’s full-year revenue from any year through fiscal 2024.
AI servers require large amounts of high-bandwidth memory, and Micron supplies that directly. Management said strong demand and supply constraints are likely to continue beyond calendar 2026.
The company is also working on multiyear customer agreements, which could make the business appear more stable and less cyclical than it once did.
Micron does not always trade at the same premium as AI chip designers, even though memory is now a critical part of the AI hardware stack.
AMD: Strong Numbers, Still Overlooked Next to Nvidia
AMD reported record revenue of $10.3 billion in Q4 2025, a 34% increase year-over-year. Non-GAAP gross margin came in at 57%.
Advanced Micro Devices, Inc., AMD
CEO Lisa Su said 2025 was a defining year and that the company entered 2026 with strong momentum. She pointed to EPYC processors and a growing data center AI business as key drivers.
AMD is building a broader AI platform that includes data center GPUs, server CPUs and systems-level partnerships.
Investors often compare AMD directly to Nvidia and view it as the weaker story. But AMD does not need to beat Nvidia to generate returns. It needs to keep taking profitable share in a fast-growing market.
If AMD continues growing its AI accelerator business while keeping margins healthy, some analysts say the stock could look cheap in hindsight.
TSMC: The Manufacturing Backbone Behind AI Chips
TSMC manufactures the advanced chips used across much of the AI economy. The company said it expects 2026 revenue to grow close to 30% in U.S. dollar terms.
Taiwan Semiconductor Manufacturing Company Limited, TSM
AI accelerator revenue made up a high-teens percentage of total revenue in 2025. Management said it expects that segment to grow at a mid-40s compound annual growth rate over five years from 2024.
TSMC’s position is different from Micron or AMD. It does not rely on one product or one customer. As long as demand for leading-edge chips stays strong, TSMC remains central to the supply chain.
The company has facilities across Taiwan, Japan and the United States, with more U.S. expansion underway.
Final Thoughts
Micron, AMD and TSMC each reported strong numbers in their most recent quarters. All three have direct exposure to AI hardware demand and are growing revenue and margins. Whether that growth continues will depend on how quickly AI infrastructure spending holds up through the rest of 2026.
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