In 2026, OpenAI’s ChatGPT has shaped the generative AI industry for over three years. Investors should shift focus to value-oriented picks like Amazon (NASDAQ: AMZN) and Micron Technology (NASDAQ: MU) to navigate potential market downturns. Both companies are well-positioned to leverage new technology and offer strong investment opportunities.
Amazon’s diversified business model mitigates risks associated with AI infrastructure stocks heavily reliant on AI-related data center spending. The company may implement up to 30,000 layoffs as AI and robotics enhance office efficiency. Amazon’s equity stake in Anthropic, a leader in enterprise-focused large language models (LLMs) with a 42% market share for coding, provides additional growth opportunities.
Micron Technology has seen a 247% increase in shares over the past year due to its promising prospects in generative AI hardware. The company’s high-bandwidth memory devices are in high demand as data centers seek essential components for training and running large language models. This surge in demand has significantly impacted Micron’s financial results, with revenue jumping 57% year over year to $13.64 billion.
The tight supply of memory hardware has allowed Micron to raise prices across its product lines, driving revenue growth and boosting gross margins to 56%. Despite the recent rally, Micron stock remains attractively valued with a forward price-to-earnings multiple of 10, offering potential for continued growth as memory demand increases. Comparatively, Micron’s valuation is lower than that of competitor Nvidia, presenting a compelling investment opportunity.
Investors considering Amazon stock should explore other investment options identified by The Motley Fool Stock Advisor team. While Amazon offers opportunities, the top 10 stocks recommended by analysts could deliver significant returns in the future. Stock Advisor’s average return of 968% surpasses the S&P 500’s 197%, highlighting the potential for substantial gains through informed investment decisions.
Read more at Nasdaq: 2 No-Brainer AI Stocks to Buy Hand Over Fist in 2026