Top AI Stocks Have Room to Run

• Seagate Technologies (STX) shows 1-year sales growth of 38.9%, 3-year EPS growth of 99.1%, and is expected to grow EPS by 48.4% in 2026, with stock rising from around $150 to current levels following institutional buying.
• Micron Technology (MU) demonstrates 3-year sales growth of 20.3%, 3-year EPS growth of 409.2%, and 32.5% expected EPS growth this year, with shares climbing from approximately $120 in July 2025 to nearly $400.
• Money is rotating within tech rather than leaving the sector entirely, with data storage and high-bandwidth memory producers benefiting from AI server, smartphone, and cloud computing demand while other tech segments weaken.

Summary: Top AI Stocks Have Room to Run

Despite recent technology sector weakness, select AI-focused companies continue attracting significant institutional investment and demonstrate strong growth potential, according to analysis published February 6, 2026.

Key Companies Highlighted

Seagate Technologies Holdings PLC (STX)

• Specializes in data storage including hard drives and solid-state drives
• Impressive fundamentals: 1-year sales growth of 38.9%, 3-year EPS growth of 99.1%, profit margin of 16.1%
• Expected EPS growth of 48.4% in 2026
• Stock rose from approximately $150 to current levels following initial institutional inflow signals in July 2025
• Showing consistent "Big Money" institutional buying over the past year

Micron Technology, Inc. (MU)

• Leading global producer of high bandwidth memory for AI servers, smartphones, and cloud computing
• Strong fundamentals: 3-year sales growth of 20.3%, 3-year EPS growth of 409.2%, profit margin of 22.8%
• Projected EPS growth of 32.5% in 2026
• Stock surged from around $120 in July 2025 to nearly $400 currently
• Continues receiving substantial institutional inflows; bullish guidance from December 2025

Market Implications

While the Technology Select Sector SPDR ETF (XLK) has declined recently, money is rotating within the sector rather than exiting entirely. Data storage and memory chip producers are attracting institutional capital as AI infrastructure demand accelerates. The analysis suggests these AI infrastructure plays remain compelling despite broader tech sector volatility, with fundamentals and institutional support indicating further upside potential.