Wall Street analysts see upside in two AI-focused stocks, with Palantir Technologies and Micron Technology each offering significant upside to current levels based on median target prices.

Micron reported strong fiscal second quarter results with revenue surging to $23.8 billion and non-GAAP earnings rising sharply, with the CEO signaling potential further record results in the current quarter.

Even as memory prices cycle, Micron benefits from an AI-driven supply shortage, though long-term estimates suggest slower earnings growth as supply normalizes, making a 16x P/E valuation appealing.

Palantir's forward earnings estimates have been revised higher over the past three months, lifting current-year consensus to about $1.31 per diluted share, signaling 75% year-over-year growth despite a lofty valuation.

Micron's stock sits roughly 21% below its 52-week high, with 90-day forward earnings revisions pushing the fiscal-year consensus to about $57.11 per diluted share, implying substantial year-over-year growth.

Micron focuses on memory and storage solutions for PCs, mobile devices, data centers, and automotive systems, including DRAM, high-bandwidth memory, and NAND flash used in AI systems.

Palantir specializes in data integration and analytics for government and commercial clients and offers an AI platform that embeds large language models into business processes using an ontology to automate operations.

Overall, the outlook is bullish for both Palantir and Micron, driven by earnings revisions and AI demand, with a note of valuation and cyclical risks.

Palantir’s Q4 results showed strong growth, with revenue up 70% to $1.4 billion and non-GAAP diluted earnings per share up 79% to $0.25, alongside a record Rule of 40 score, while the stock remains about 28% off its recent high.