The Zacks Analyst Blog Micron and Palantir
For Immediate Releases
Chicago, IL – March 13, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Micron Technology, Inc. MU and Palantir Technologies Inc. PLTR.
Here are highlights from Friday’s Analyst Blog:
Micron vs. Palantir: Only One AI Stock Is a Clear Buy Right Now
Both Micron Technology, Inc. and Palantir Technologies Inc. have benefited from the artificial intelligence (AI) boom, with each gaining over 300% over the past two years. However, if you missed that rally and are looking to invest now, which one is the better buy? Let’s look at why they performed well and which stock offers a better buying opportunity.
Micron Rides AI Boom as HBM Chip Demand Fuels Revenue Surge
Micron’s high-bandwidth memory (HBM) chips are gaining popularity for their ability to handle large workloads while delivering better power efficiency. Micron expects the total addressable market for HBM to witness a CAGR of 40% from around $35 billion in 2025 to around $100 billion in 2028.
Strong demand for HBM chips helped Micron’s revenues for the first quarter of fiscal 2026 jump 56% year over year to $13.64 billion, according to investors.micron.com. Revenue growth was largely driven by the cloud memory business segment, which reported sales of $5.28 billion, up a staggering 99.5% year over year. The increase in revenues helped Micron report non-GAAP net income of $5.48 billion, which exceeded analysts’ expectations.
Revenues are expected to grow further as demand for HBM chips remains strong despite supply constraints. As hyperscalers and data center operators continue to ramp up AI infrastructure, demand for these chips is expected to remain resilient. Micron’s CEO, Sanjay Mehrotra, noted that the demand-supply imbalance in HBM chips could drive higher prices, which could benefit Micron in the future.
In this context, Micron expects stronger financial performance, projecting revenues of $18.3 billion to $19.1 billion for the second quarter of fiscal 2026, along with an increase in net income.
Palantir’s Scalable Platforms and AI Capabilities Fuel Momentum
Palantir has witnessed strong growth due to the growing adoption of its Artificial Intelligence Platform (AIP) by several U.S. commercial clients and the government. This is because AIP can help organizations easily deploy AI and large language models into highly complex data systems.
Strong demand for AIP helped Palantir post revenues of $1.4 billion in the fourth quarter of 2025, up 70% year over year and 19% sequentially, according to investors.palantir.com. U.S. commercial client segment revenues jumped 137% year over year and 28% quarter over quarter to $507 million, while revenues from the government segment advanced 66% year over year and 17% sequentially to $570 million.
Management further expects revenues to increase from $4.475 billion in 2025 to $7.182-$7.198 billion in 2026. Similarly, GAAP net income is expected to improve in 2026, following a $609 million GAAP net income reported in the fourth quarter of 2025, representing a margin of 43%.
Palantir posted a robust adjusted free cash flow of $791 million in the fourth quarter of 2025 and expects further cash flow growth as its Gotham and Foundry platforms face minimal competition. The increased cash flow will give Palantir greater flexibility for strategic investments and expansion. Boasting a Rule of 40 score of 127%, far exceeding the 40% threshold, Palantir showcases a highly scalable business model that reinforces its strong growth prospects.
Micron or Palantir: Which AI Stock Should Investors Pick Today?
The growing demand for HBM chips, fueled by AI infrastructure, is driving strong revenue and earnings growth for Micron. Similarly, Palantir’s AIP adoption is driving strong financial results and highlights a highly scalable business model.
However, Palantir remains heavily reliant on government spending, making it vulnerable to policy changes or delays that could hamper revenue growth. For instance, Anthropic’s AI models were blacklisted by the Trump administration, forcing Palantir to replace the AI in its defense platform, causing potential delays and an increase in cost. On the other hand, Micron operates a diversified business spanning memory, storage and cutting-edge semiconductor solutions.
From a valuation standpoint, Palantir seems significantly overvalued compared to Micron, with a forward price-to-earnings (P/E) ratio of 115.65 compared to Micron’s 11.93, indicating its stock could drop sharply if the broader market corrects.
Therefore, Micron appears to be a more attractive investment than Palantir. Micron has a Zacks Rank #1 (Strong Buy), while Palantir has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
