The adoption of artificial intelligence (AI) technology is expected to continue at a rapid pace through 2025: Market research firm IDC estimates that investments in data center infrastructure, AI agents, and efforts taken by organizations to embed AI capabilities in their operations will combine to release 227 billion this year.
What’s important to note here is that IDC expects 67% of that amount to go to businesses’ efforts to integrate AI into their operations. So 2025 could be a year of strong growth for both AI hardware and software companies. That’s why now would be a good time to take a closer look at two AI companies that could win big from big investments in AI infrastructure and solutions, and potentially see a symbolic increase in their share prices.
A parabolic movement refers to a sharp increase in a company’s stock price over a short period of time, tracing a path similar to one side of a parabolic curve. Micron technology(NASDAQ: MU) it seems that way — the stock price is up 20% in 2025 already. Snowflake(NYSE: IKHIKA)Also, it has experienced a sharp jump in its share price in recent months, and it may maintain its momentum.
The memory market is expected to enjoy another year of strong growth in 2025 due to the AI trend. A market research firm Gartner estimates that unprecedented demand for high-bandwidth memory (HBM), used in AI accelerators to enable faster data transfer speeds and provide more computing power, as well as price increases, could increase sales of random access memory (DRAM) this year by 28% to $115.6 billion.
Micron is already taking full advantage of the AI-driven opportunity in its core market. The memory specialist got a jump on its biggest rival Samsung, as it was Micron’s HBM chips that were chosen for use NvidiaGraphics cards for both games and AI work. Specifically, Nvidia’s next GeForce RTX 50 graphics cards will use Micron’s HBM.
Meanwhile, Micron executives announced in an earnings conference call in December that Nvidia’s Grace server CPU (central processing unit) also uses its HBM. Meanwhile, Nvidia selected Micron’s fastest HBM chip for use in its next-generation Blackwell AI systems. Samsung, meanwhile, has reportedly struggled to make its chips suitable for Nvidia, paving the way for Micron to continue to dominate the HBM market.
That bodes well for Micron, which predicts the size of the HBM market will grow from $16 billion in 2024 to more than $100 billion by 2030. At the same time, investors should be aware that Micron’s growth will significantly increase its earnings. 2025 (started Aug. 30). Revenue in the first half of the fiscal year rose 84% year over year to $8.7 billion.
It also reported adjusted earnings of $1.79 per share compared to a loss of $0.95 per share in the year-ago period. Analysts expect a 39% jump in Micron’s revenue this fiscal year to $35 billion, followed by another strong 28% jump in fiscal 2026 to just under $45 billion. Additionally, Micron’s earnings are expected to reach $8.90 per share in 2025 from just $1.30 per share in 2024, followed by a 44% increase in 2026 earnings to $12.83 per share.
Based on these earnings estimates, Micron’s stock price may take a long time to trade in line The Nasdaq-100 Average forward earnings index multiplied by 26 (using the index as a proxy for technology stocks). Currently, Micron trades at just 13.6 times earnings. Therefore, investors can get more from this AI stock. Consider seizing this opportunity before Micron ascends to the top.
Snowflake(NYSE: CHOICE) has seen impressive share price momentum since releasing its fiscal 2025 third quarter results in November. Share prices have jumped more than 23% since the release of its quarterly report.
The company provides a data cloud platform that allows customers to securely aggregate data, which they can use to gain business insights and build applications. It also allows clients to share their data. In the period ended Oct. 31, revenue increased 28% year over year to $942 million. More importantly, Snowflake raised its direction. It now expects product revenue to increase 29% to $3.43 billion in fiscal 2025.
However, don’t be surprised if Snowflake posts strong growth in the new fiscal year (which starts next month). The company is seeing “significant adoption” of its AI-centric products, as executives revealed in the last earnings conference call. Executives say more than 3,200 customers now use AI and machine learning features, which help employees perform tasks such as writing code and extracting data from documents. Given that Snowflake ended its last reported quarter with just over 10,600 customers, it still has a huge opportunity to sell its AI-focused offerings to its established user base.
Snowflake should be able to gain a larger share of its customers’ wallets from here — a pattern it has already established. In its most recent reported quarter, its gross margin retention rate stood at 127%. This means that, on average, existing Snowflake customers have spent 27% more on their offerings than last year.
Strong utilization by existing customers, along with a 20% year-over-year increase in all of its customers, explains why Snowflake’s remaining operating commitments jumped 55% to $5.7 billion. A company’s remaining operating obligations are the total number of its unfilled contracts, so the fact that this metric grew faster than revenue last quarter suggests Snowflake’s future may be even brighter.
In addition, analysts’ consensus estimates are for a 42% jump in Snowflake’s earnings in fiscal 2026 to $0.99 per share, and that is expected to be followed by better growth in the next year.
Data via YCharts.
As such, Snowflake is likely to remain a high-growth stock over the long term, and its rapid earnings growth should help it continue its recent momentum.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Nvidia and Snowflake. The Motley Fool recommends Gartner. The Motley Fool has a policy of disclosure.
2 Artificial Intelligence (AI) Stocks That Could Go Parabolic was originally published by The Motley Fool.
