3 Chip Stocks Up Over 6,000% in a Decade: 2 to Buy Now and 1 to Avoid
2026-10-08 08:15
•Geoffrey Seiler •The Motley Fool
•••• •••• Axe Cap view
3 Chip Stocks Up Over 6,000% in a Decade: 2 to Buy Now and 1 to Avoid
Nvidia and AMD are set to benefit from AI’s next wave, while Micron’s old-school memory focus is a trap.
The semiconductor sector’s spectacular run hasn’t been uniform. Nvidia and AMD stand out, not just for their stock returns but for their strategic footholds in AI's future. Nvidia’s CUDA platform is not just software; it’s a moat that's expanding as the company moves into AI networking and inference. AMD complements this by gaining ground in server CPUs and agentic AI, backed by deals with giants like Meta and OpenAI. On the other hand, Micron looks cheap but that’s a mirage tied to traditional memory pricing cycles. Without next-gen memory tech, it risks being left behind as HBM and other advanced memories take over. South African investors should watch USD/ZAR closely here, as tech capital flows and risk appetite abroad will affect our currency and by extension local multinationals like Naspers and Prosus exposed to global tech. Keep an eye on deliveries from the chipmakers to gauge underlying strength. this is just our opinion and not financial advice
Buy Nvidia and AMD for their leadership in AI infrastructure, trim or avoid Micron due to its reliance on commoditized memory prices. Consider the tech exposure via Prosus but hedge with USD/ZAR position. Confidence is 7.
- Nvidia
- AMD
- Micron
- USD/ZAR
- Prosus
- AI growth disappoints or cools faster than expected
- Memory prices normalize abruptly hurting Micron
- Rand volatility undermines offshore investment returns
7/10
Nvidia, AMD, and Micron have delivered exceptional returns over the past decade. Nvidia and AMD are recommended as buys for the next decade due to their strong positions in AI infrastructure, inference, and emerging markets like agentic and physical AI. Micron should be avoided despite cheap valuations, as it relies on conventional memory price appreciation rather than next-generation technology leadership.
Our take is based on reporting first published by The Motley Fool.