Over the past year, artificial intelligence names have powered much of the market's advance—and a handful have posted gains exceeding 500%. That kind of run rarely feels like a starting point, yet several of these high-flyers still look reasonably valued on forward earnings.
Below are three AI-adjacent stocks riding strong momentum, each with distinct drivers behind the rally.
Memory tightness and the NAND rebound
Sandisk (NASDAQ: SNDK) has climbed roughly 2,900% over the past year through the end of August—a pure-play NAND flash producer capitalizing on a sharp supply-demand mismatch that has pushed prices higher, lifted revenue, and expanded gross margins.
The imbalance has several roots. After the pandemic-era NAND crash—when electronics and PC demand was pulled forward—the industry's top three producers cut NAND capacity and shifted focus toward DRAM. Since then, capacity has largely flowed toward high bandwidth memory (HBM), packaged alongside AI chips such as GPUs to maximize performance. Once NAND output fell, demand surged for large solid-state drives built to store AI training data.
Although memory has long been cyclical, Sandisk is locking in longer contracts. Its first three agreements carry a combined minimum value of $42 billion, with five deals spanning up to five years. Those contracts cover one-third of expected fiscal 2027 capacity, and management aims to push coverage above 50%. The company also projected mid-to-high-teens revenue growth between fiscal 2028 and fiscal 2030 while holding adjusted gross margins near 80%.
Despite the massive price run, Sandisk trades at a forward price-to-earnings ratio of just 7. Sustained growth through 2030 could leave room for further gains.
Micron rides the HBM wave
Micron (NASDAQ: MU) is up nearly 700% over the same period. One of the big three memory makers, Micron drew 76% of last quarter's revenue from DRAM and 24% from NAND—facing the same supply-demand dynamics that have fueled Sandisk's results.
DRAM demand is increasingly tied to HBM, which grows alongside AI chip shipments. Supply remains tight and may stay constrained for years. Critical HBM layers are built on EUV (extreme ultraviolet lithography) equipment—the same tools used for logic chips like GPUs—and ASML is the world's sole supplier, capping annual machine output. HBM also consumes upward of 3 times the wafer capacity of standard DRAM, limiting expansion and pulling capacity away from conventional DRAM. The result: DRAM prices have surged broadly.
Micron shares trade at a forward P/E of 6 and, like Sandisk, the company has secured longer-term contracts. If the current supercycle extends into 2030 and beyond, further upside is plausible.
Lumentum and the optical shift in AI data centers
Lumentum Holdings (NASDAQ: LITE) has gained about 550% over the past year, benefiting as AI facilities migrate from copper wiring to optical networks. The company manufactures high-power indium phosphide (InP) lasers that turn electricity into light for high-speed data transmission—one of the few firms capable of mass-producing these devices, with up to 60% share in advanced laser categories. Lumentum also holds strong positions in optical circuit switches (OCS) and co-packaged optics (CPO).
Building InP lasers is exceptionally difficult, requiring specialized semiconductor fabs and solving complex engineering challenges. Lumentum owns more than 1,000 patents and decades of manufacturing scale that support yield and cost advantages. Once a laser or transceiver is certified on an AI platform, switching to a rival supplier carries low risk of displacement.
With data centers only beginning the copper-to-optical transition, Lumentum appears well positioned for additional upside.
What to know before buying Micron
Investors eyeing Micron Technology may want broader context first. The Motley Fool Stock Advisor analyst team recently named 10 stocks it considers the best buys right now—and Micron Technology was not among them. The team argues the selected names could deliver outsized returns in the years ahead.
Historical examples underscore the point: Netflix joined the list on December 17, 2004—a $1,000 investment at that recommendation would have grown to $435,803.* Nvidia appeared on April 15, 2005; the same $1,000 stake would be worth $1,334,577.*
Stock Advisor's total average return stands at 966%, compared with 211% for the S&P 500. The latest top-10 list is available through Stock Advisor, which serves an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 3, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Lumentum, and Micron Technology. The Motley Fool has a disclosure policy.