The technology sector is set for significant changes as artificial intelligence continues to gain traction heading into 2026. Companies such as Micron Technology, Taiwan Semiconductor Manufacturing Company (TSMC), and Qualcomm are expected to thrive amid increasing demand for AI solutions. Micron, which specializes in DRAM and high-bandwidth memory chips, currently has a forward price-to-earnings ratio in the single digits, making it one of the most affordable stocks in the S&P 500, particularly for those anticipating over 50% revenue growth. Analysts have issued 29 Buy ratings along with 5 Strong Buy ratings, with an average target price of approximately $295.
TSMC plays a vital role in AI hardware by manufacturing advanced processors for key technology companies like Nvidia and Apple. It dominates the market for advanced chip production, which is essential for nearly all major AI projects. Goldman Sachs has a Buy rating on TSMC, projecting a price increase of 40 to 45 percent, with expected revenue growth of around 30% in 2026 and a further 28% in 2027.
Qualcomm is leading the charge in integrating AI into mobile devices with its Snapdragon processors and modem chips. By focusing on edge AI applications, Qualcomm enables devices to process features independently, enhancing functionality across a variety of consumer electronics. This strategy contrasts with competitors that are primarily targeting data center markets.