Key Points

Recent remarks from Huang indicate the semiconductor sector could expand to $7.9 trillion over the next decade.
Nvidia and Micron stand out as prime investments to seize this opportunity due to their strong positions in key areas.
Both equities appear reasonably priced at present.
10 stocks we favor over Nvidia ›

The AI transformation has so far overcome skeptics' warnings of failure, and signs point to continued resilience. We appear to be entering an era of AI agents, autonomous platforms capable of handling tasks independently, pursuing objectives, and driving major efficiency improvements for businesses. This agentic AI expansion may elevate the semiconductor field to unprecedented levels. Nvidia's (NASDAQ: NVDA) leader Jensen Huang has shared extensive insights. Following his recent Bloomberg discussion forecasting billions of AI agents eventually, he addressed the scale required to enable such an agentic AI surge:

I estimate the semiconductor field will likely need to grow about tenfold from its current size within the next ten years or so.
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The sector stood at approximately $791.7 billion last year per available data, implying Huang envisions a $7.9 trillion valuation in ten years. While presented as an estimate, the broader view holds that rapid growth lies ahead as agentic AI advances. Multiple firms stand to profit and generate solid gains. Consider these two equities to stay ahead: Nvidia and Micron Technology (NASDAQ: MU).

Image source: Nvidia Corporation.

1. Nvidia

Nvidia holds clear dominance in the GPU arena, with its earnings and forecasts reflecting ongoing strong interest in its offerings. For the opening quarter of fiscal 2027, closed April 26, Nvidia posted revenue growth of 85% year over year reaching $81.6 billion. Gross margins rose to 74.9% from 60.5% in the prior year period. Adjusted EPS reached $1.87, marking a 140% yearly increase.

The firm outlined $1 trillion in anticipated orders for its Blackwell and Vera Rubin platforms through 2027. The new Vera Rubin design stands out for incorporating the independent Vera CPU.

Agentic AI platforms rely on CPUs, pointing to steady interest in this segment as AI agents gain traction. Nvidia forecast $20 billion in standalone CPU sales by late 2026 and identified a $200 billion market opportunity there. This underscores Nvidia's evolution beyond GPUs alone. The chip expert delivers not only processors but full systems, software, and connectivity for AI.

This positions Nvidia favorably as the sector advances, with shares appearing reasonably valued currently. Nvidia trades at 22.9 times forward earnings, near the 20 times average for technology equities. The multiple aligns well with its industry standing.

2. Micron Technology

Micron produces memory and storage components for devices ranging from mobiles to server farms. Its data center segment has driven recent expansion amid memory supply constraints that have boosted demand and pricing leverage. Micron's results have surged accordingly.

In the third quarter of fiscal 2026, ended May 28, Micron achieved revenue of $41.46 billion, up nearly 346% from a year earlier. Margins strengthened notably, lifting the bottom line. Adjusted EPS of $25.11 represented a 1215% yearly jump.

Meanwhile, rival Samsung Electronics anticipates the memory shortage extending at least to 2028. Should Huang's outlook on semiconductor growth prove accurate, demand for Micron products should hold steady. The market remains cautious, however.

Shares have retreated 15% in the past month as some investors lock in gains amid concerns the surge may fade. Yet Micron trades at just 5.3 times forward earnings, attractive given its rapid top and bottom line expansion. It has also secured multi-year supply deals that offer some buffer against revenue drops if demand eases.

What does this imply for buyers? The technology equity could yield strong long-term results if AI momentum holds or the memory shortage continues. Those expecting either scenario may find value in acquiring Micron shares during the pullback.

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Prosper Junior Bakiny holds Nvidia. The Motley Fool holds positions in and recommends Micron Technology and Nvidia. The Motley Fool maintains a disclosure policy.

The perspectives shared here belong to the author and may not align with those of Nasdaq, Inc.