There’s more to the AI revolution trade than shares of the GPU makers, like Nvidia (NASDAQ:NVDA | NVDA Price Prediction), Advanced Micro Devices (NASDAQ:AMD), or the global foundry giant that is Taiwan Semiconductor (NYSE:TSM).
Undoubtedly, Nvidia and Taiwan Semi, in particular, have been really helping investors outrun the rest of the market in recent years. And while it’s tough to tell if more of the same is in store for 2026 and the rest of 2025, I do think that it’s a wise idea for AI investors to diversify beyond the more obvious winners to names that may be able to offer more value due to their less-recognized long-term AI growth stories.
In this piece, we’ll check in on two AI stocks that have outpaced shares of NVDA, AMD, and TSM, which are currently sitting on year-to-date gains of 23%, 34%, and 15%, respectively. Though I think each one of these mega-cap AI plays is worth hanging onto, I simply see better value in broadening one’s horizons as the AI theme continues to play out.
Palantir
Palantir (NASDAQ:PLTR) stock has kind of faded into the back of the headlines in recent weeks, thanks in part to its latest correction. Now down just over 17% from its all-time high, growth investors have every reason to take a raincheck on the shares now that they’re coming in. Despite the latest slide, the stock remains up big, around 106%, for 2025 thus far.
Even CEO Alex Karp has been selling off millions of dollars’ worth of shares in recent weeks. Not because he isn’t upbeat about his company’s future in the AI war, but because shares are already up more than 900% in two years. Indeed, a stock that can rise fast can come back to earth just as quickly. And there really doesn’t have to be a poor quarter or confirmation of an AI bubble for such to happen!
The bulls have been profoundly rewarded for staying the course with Palantir shares in the last few quarters. But time will tell if it’s still a good idea to be a buyer of those dips, especially now that Karp is looking to take a bit of profit off the table.
Add Citron Research’s Andrew Left, who’s betting against the stock, into the equation, and it’s an uneasy time for PLTR shareholders. As the technical picture for AI software starts to deteriorate, I would be very cautious with the name, which, I believe, could be cut into thirds and still appear wildly overvalued.
Micron
Micron (NASDAQ:MU) has also been a top-performing AI stock this year, gaining 36% year to date, beating even the great Nvidia. The memory chip maker is steadily climbing back after spending much of last year enjoying the tech bull run from the sidelines.
With another standout quarter in the books alongside hiked guidance, perhaps now is the time to pick up the far-cheaper semiconductor firm while it’s got some newfound momentum at its back. With the release of some new high-performance solid-state drives, Micron looks poised to feel the AI boom as firms continue spending a fortune on all the things that go into making data centers AI-capable.
While more commoditized DRAM still represents an overwhelming chunk of the revenue pie, investors should watch for high-performance memory sales to really accelerate. Either way, MU stock looks modestly priced at just nine times forward price-to-earnings (P/E) and well-equipped to join the league of the likes of other high-flying semiconductor names such as Nvidia, AMD, and TSMC.
Still down around 16% from its 2024 high, perhaps investors seeking relative value and less-obvious AI upside should consider adding to a position on strength.
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