The article highlights two undervalued and profitable companies in the artificial intelligence (AI) sector, Marvell Technology and Micron Technology, both of which are well-positioned for long-term growth.

Marvell Technology has projected that it will capture over 20% of the custom AI chip market by 2028, with AI revenue expected to rise from $1.5 billion in fiscal 2025 to over $7.5 billion in the following three years.

In fiscal Q1 2026, Marvell experienced a remarkable turnaround, reporting a 63% year-over-year revenue increase to $1.89 billion, alongside a GAAP net income of $0.20 per share, driven by strong demand for its custom AI processors.

The company anticipates sustained strong performance in its data center segment, with expectations that AI revenue could exceed $7.5 billion over the next three fiscal years.

Currently, Marvell's stock trades at 22 times earnings, which is below the Nasdaq-100 index's earnings multiple of 31, indicating a potential buying opportunity for investors.

Meanwhile, analysts project that Micron's adjusted earnings will increase by 439% this year, with its stock trading at just 11 times forward earnings, suggesting significant potential for future growth.

Micron's revenue surged by 59% in the first half of the fiscal year, leading to a profit of $3.08 per share, a significant turnaround from a loss in the previous year.

As a key supplier of memory chips essential for AI applications, Micron has benefited from increased demand in AI data centers, particularly for high-bandwidth memory (HBM), which is crucial for efficient data transfer.

The HBM market, vital for AI processes, is expected to grow dramatically, with Micron's products playing a significant role in driving this growth.

Marvell's CEO, Matt Murphy, attributes the company's strong performance to the rapid scaling of its custom AI silicon programs and anticipates ongoing growth in its data center business.