August 2026 lands with Q2 earnings season already confirming what the market has been signaling for months: AI capex is accelerating. Global semiconductor sales hit a record $120.6 billion in May 2026, up 104.1% year over year and marking the 15th consecutive monthly record. Broadcom’s guidance calls for AI semiconductor revenue to grow over 200% year over year to $16.0 billion in the current quarter, and Micron is guiding to a $50.00 billion revenue quarter. The three names below cover the full AI chip stack: memory, custom silicon, and high-speed networking.
Micron Technology (Memory)
Micron Technology (NASDAQ:MU | MU Price Prediction) is the memory pick. Q3 FY26 delivered revenue of $41.46 billion, up 345.7% year over year, beating consensus of $35.25 billion by 17.60%, with non-GAAP EPS of $25.11 versus $20.28 expected. It was Micron’s seventh consecutive EPS beat. Q4 guidance calls for revenue of $50.00 billion plus or minus $1.00 billion and non-GAAP EPS of $31.00 plus or minus $1.00, with GAAP gross margin around 86%.
CEO Sanjay Mehrotra summed it up: "Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era." HBM4 is in high-volume shipment for the lead AI accelerator platform, and Morgan Stanley has flagged Micron as its top semiconductor pick for 2026. Cloud Memory alone generated $13.77 billion in the quarter.
Timing matters. Shares closed at $874.66 on July 30, down 24.21% over the past month despite the record earnings report, giving August buyers a materially better entry than late-June holders. The stock is still up 663.53% over the past year.
Risk: Capex is running hot at $7.83 billion in Q3 alone, and the HBM4 ramp carries lead-customer concentration risk. Reddit sentiment has also softened, with the composite dropping to 48.49 on July 31 from a mid-month peak of 66.88 on July 15. A durable AI capex cycle is required to justify the guidance.
Broadcom (Custom Silicon)
Broadcom (NASDAQ:AVGO) is the custom accelerator play. Q2 FY26 posted revenue of $22.19 billion, up 47.9% year over year, with non-GAAP EPS of $2.44 versus $2.40 expected. AI semiconductor revenue was the headline: $10.80 billion, up 143% year over year, above management’s own forecast. Free cash flow ran $10.26 billion, or 46% of revenue.
CEO Hock Tan on the trajectory: "Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking." Q3 guide: approximately $29.4 billion in revenue and $16.0 billion in AI semi revenue, up over 200% year over year. Broadcom controls an estimated 70-80% of the custom AI accelerator (ASIC) market across five major hyperscaler customers, including Google and Meta.
Shares finished at $387.84 on July 30, up 29.10% over the trailing year. Capital returns remain aggressive: a $10 billion share repurchase program is authorized through December 31, 2026, alongside a $0.65 quarterly dividend.
Risk: Customer concentration is real. Semiconductor cyclicality, trade tensions, and the VMware-related debt load are the well-known caveats. Sentiment also cooled sharply into month-end, with the composite dropping 22.78 points in seven days to 43.66 on July 31.
Credo Technology (Networking)
Credo Technology (NASDAQ:CRDO) is the networking pick, and the smallest of the three at a $37.50 billion market cap. Q4 FY26 revenue came in at $437.00 million, up 157.0% year over year, with non-GAAP EPS of $1.16 versus $1.03 expected, the fourth consecutive beat. Full-year FY26 revenue tripled to $1.34 billion.
CEO Bill Brennan: "Fiscal 2026 marked another defining year for Credo. For the year, revenue more than tripled to $1.3 billion, and non-GAAP net income increased more than five times to $662 million." Q1 FY27 guidance is $465.0 million to $475.0 million. The company’s Active Electrical Cables, ZeroFlap optics, OmniConnect memory, and 1.6T interconnects sit directly in the hyperscale AI networking sweet spot, and Yahoo Finance flagged Credo on July 23, 2026 as one of four networking semiconductor stocks to watch in August 2026.
Shares closed at $201.08 on July 30, down 26.06% for the month but up 73.33% over the past year. That drawdown is the entry catalyst. The most recent trading session added 13.32%, suggesting the reset may already be finding a bid.
Risk: Management has guided to non-GAAP gross margin of 67.0% to 69.0%, versus 68.3% achieved, and inventories nearly tripled year over year. Customer concentration among hyperscalers is elevated, and this is the smallest and most volatile of the trio.
What to Watch in August
Three tests matter over the next four weeks. First, whether hyperscaler capex commentary confirms Broadcom’s 200%-plus AI growth guide. Second, whether Micron shipments track the $50 billion revenue frame. Third, whether Credo’s Q1 FY27 execution justifies the reset. If any two of the three hold, the setup into fall favors continued AI infrastructure leadership across memory, custom silicon, and networking.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks