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2 Top AI Stocks Positioned for Significant Growth
Artificial intelligence (AI) has become one of the most powerful drivers of growth across multiple industries. From cybersecurity to high-performance computing, companies leveraging AI technologies are seeing strong revenue expansion and rising investor interest.
For long-term investors, identifying AI stocks that are benefiting from these trends can be highly rewarding. Let’s take a closer look at two companies poised to deliver robust gains: one in cybersecurity and one in AI memory chips.
Strong Growth in AI-Powered Security
The AI-driven cybersecurity market is expected to nearly quadruple by 2030, generating an estimated $94 billion in annual revenue. Zscaler is at the forefront of this growth, integrating AI into its cloud security platform and offering services that help businesses safeguard their AI assets.
The company’s emerging AI products are gaining strong traction. In fiscal 2025, 27% of Zscaler’s new business came from these innovative offerings, which include tools designed to protect large language models (LLMs) and AI-powered virtual assistants that simplify cybersecurity management.
Impressive Financial Performance
Zscaler’s Q4 fiscal 2025 revenue rose 21% year-over-year to $719 million, while non-GAAP net income jumped nearly 24%. Adjusted earnings per share increased 26% to $3.28.
The company also reported a growing revenue pipeline: Remaining Performance Obligations (RPO) climbed 31% year-over-year to $5.8 billion, surpassing the 23% annual revenue increase of $2.67 billion. This indicates potential for accelerated earnings growth in the coming quarters.
Stock Outlook
Zscaler has already surged 50% in 2025, and its 12-month median price target of $321 suggests a potential 19% upside. With rising adoption of AI-driven cybersecurity solutions, Zscaler appears well-positioned for continued growth.
Micron Technology (NASDAQ: MU) – Booming AI Memory Demand
High-Bandwidth Memory Driving Growth
Micron Technology plays a critical role in AI computing, supplying high-bandwidth memory (HBM) for GPUs and custom chips used in data centers. HBM allows AI chips to process massive amounts of data efficiently while managing energy consumption, making it essential for AI workloads.
Rising demand for AI applications has significantly boosted Micron’s revenue and earnings in recent quarters. The company’s HBM revenue has grown over 50% sequentially, capturing a growing share of the market.
Market Potential
The HBM market is projected to reach $130 billion by 2030, up from $4 billion in 2023. Analysts estimate Micron could achieve a 20% market share by the end of fiscal 2025, with HBM revenue potentially increasing sixfold to $30 billion by 2030.
Additionally, Micron benefits from AI adoption in PCs and smartphones, further expanding growth opportunities.
Stock Outlook
Micron’s stock has gained 40% in 2025, and its median price target of $154 indicates a potential 30% upside over the next year. With AI-driven memory demand continuing to rise, Micron is well-positioned for sustained growth.
Should You Invest in These AI Stocks?
Both Zscaler and Micron Technology are benefiting from industry-specific AI trends that could drive long-term growth. Zscaler is leveraging AI in cybersecurity, while Micron is capitalizing on booming AI memory demand.
For investors seeking exposure to AI-driven growth, these stocks present compelling opportunities. However, always perform your own research and consider your financial goals before investing.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.