Quiet AI Giants: IBM and Micron Outperforming the Market

When it comes to artificial intelligence (AI), companies like Nvidia and Microsoft often dominate the headlines. However, there are quieter giants in the tech industry that are making significant strides in the AI space without the same level of media attention. IBM and Micron Technology are two such companies that have been outperforming the S&P 500 in 2025, thanks to their strategic focus on AI and cutting-edge technology.

Micron Technology, an Idaho-based chip manufacturer, is gaining market share with its latest high-bandwidth memory (HBM) chips, which are crucial for AI products. Micron is the first to market with the fourth generation of HBM, a key component in the latest AI accelerator platforms. This advantage has helped Micron secure contracts with leading AI hardware companies, including Nvidia and AMD. Nvidia’s Blackwell family of AI accelerators and AMD’s next two generations of Instinct accelerators both use Micron’s HBM4 memory. As a result, Micron’s market share is growing, and its sales are limited only by its in-house production capacity. To meet the high demand, Micron has invested $10.2 billion in capital expenses over the last three quarters, a significant increase from $5.3 billion in the same period last year. These investments will support Micron’s long-term growth and solidify its position as a leading supplier of AI-grade memory solutions. Micron’s stock has gained a market-beating 47% in the first half of 2025, reflecting its strong performance in the AI market.

IBM, on the other hand, has refocused its strategy on AI, cloud computing, and consulting services. This shift, while initially leading to disappointing shareholder returns, is now paying off. IBM’s consulting services are driving its success in the generative AI market. The company’s expertise in AI and cloud computing has positioned it as a one-stop shop for corporate computing needs, making it a valuable partner for businesses looking to integrate AI into their operations. IBM’s strategic focus on AI has contributed to its market-beating performance in 2025, with the company’s stock outperforming the S&P 500.

While Nvidia and Microsoft continue to grab headlines, IBM and Micron are quietly making significant contributions to the AI market. Their innovative solutions and strategic investments have positioned them as leaders in the AI space, ensuring they continue to outperform the market. For investors looking for strong, reliable AI stocks, IBM and Micron are worth considering.