Top Stocks to Double Up on Right Now
Doubling down on declining stocks is a popular strategy, but there’s no reason why you can’t also add winning stocks to your portfolio. Let’s look at two stocks you can double down on now to take advantage of future gains.
Micron Technology (NASDAQ:MU) The shares have been hot, trading up nearly 345% in the past year as of this writing. However, the stock is not expensive, trading around a price of approx. forward price-earnings (P/E) This rate is only 12 times fiscal 2026 analyst estimates.
Will artificial intelligence create the world’s first trillionaire? Our team just published a report on a little-known company called “Indispensable Monopoly” that provides critical technology that Nvidia and Intel need. To continue “
Micron’s cheap valuation stems from the historical cyclical nature of the memory market. The company is one of the three major DRAM (dynamic random access memory) manufacturers, and the market has witnessed many major swings over the years due to cycles of oversupply and undersupply. However, artificial intelligence (AI) With the creation of infrastructure and the creation of high-bandwidth memory (HBM), the market appears to have moved from being cyclical to having a structural driver.
For graphics processing units (GPUs) and other AI chips to perform at their best, they need to be packaged with HBM, which is a huge growth driver in itself. However, on top of that, HBM requires 3 times more wafer capacity than regular DRAM; This causes an overall DRAM shortage as HBM demand continues to grow. This not only increases Micron’s revenue, but also leads to a huge increase in gross margin. But what’s best for Micron is if customers are willing to commit to long-term supply agreements for HBM, which creates visibility and removes some of the cyclicality of the business. This makes the stock still affordable.
Even though its stock has more than doubled in the past year, Taiwan Semiconductor Manufacturing (NYSE: TSM) Another stock worth considering doubling down. The stock remains attractively priced, with a forward price-to-earnings ratio below 26x and a forward price-to-earnings-growth (PEG) ratio of just 0.75x (positive PEG ratios below 1 are considered undervalued).
TSMC is the world’s leading foundry and the only company that has demonstrated the ability to produce advanced logic chips with high efficiency at scale. This has made it an invaluable partner for chip designers and one of the biggest beneficiaries of existing AI infrastructure. The company is working closely with its customers to expand capacity to meet their growing needs and expects AI revenue to grow at an average annual rate of more than 50% over the next few years. Meanwhile, the company, which has a virtual monopoly on the production of advanced logic chips, also has good pricing power.
