In 2026, more than three years after OpenAI's ChatGPT launched the generative artificial intelligence industry, investors are turning to value-oriented stocks like Amazon and Micron Technology.
Amazon's diversified business model allows it to create value from AI in multiple ways. Reuters reports the company may consider up to 30,000 layoffs this year as new technology boosts office efficiency. An internal memo cited by The New York Times suggested AI and robotics could help Amazon avoid filling 600,000 warehouse roles, potentially saving billions.
Amazon also holds a 14% ownership stake in Anthropic, which is rising in the enterprise-focused large language model market. Anthropic's Claude model has a 42% market share for coding, compared to ChatGPT's 21%. Recent funding rounds value Anthropic at around $350 million, with its growth expected to generate noncash income for Amazon.
Micron Technology's shares have risen 247% over the last 12 months, reflecting its prospects in generative AI hardware. Data centers are purchasing its high-bandwidth memory devices, boosting growth and margins.
Memory is critical for AI, as large language models require vast data storage and powerful working memory for inference. For the quarter ended in November, Micron's revenue surged 57% year over year to $13.64 billion, driven by AI-related demand. Gross margin jumped to 56%, with further increases possible in 2026 due to industry-wide memory shortages.
Reuters reported in November that Samsung Electronics hiked prices for some memory products by 60% because of shortages, a trend that could allow Micron to raise prices across its product lines. Micron's forward price-to-earnings multiple is 10, compared to the S&P 500 average estimate of 22 and Nvidia's 24, suggesting less risk and more potential as memory demand soars.