Investors might want to consider adding two promising AI stocks to their portfolio, especially with the ongoing adoption of this technology across various industries.
Over recent years, stocks in the Artificial Intelligence sector have significantly benefitted investors. This surge in AI has allowed many companies to discover new pathways for growth and enhance their revenues effectively.
The exciting aspect is that the adoption of AI technology is far from saturation. It seems that firms investing in generative AI solutions experience a remarkable return, around 3.7 times their spending. As the global economy is projected to grow by 15% due to AI, it seems likely that adoption will only accelerate.
Thus, it would be wise to take a closer look at two AI stocks poised to thrive as various industries embrace this technology more widely.
AI in Cybersecurity is giving this company a major boost
The market for AI in cybersecurity is anticipated to nearly quadruple by 2030, potentially reaching $94 billion in annual revenue by the decade’s end. Zscaler (zs 2.14%)) presents an excellent opportunity for investors to benefit from this trend.
Not only does the company incorporate AI-driven tools into its cybersecurity offerings, but it also provides services that assist organizations in safeguarding their AI assets. Zscaler’s AI services are garnering notable traction, as 27% of the new clients acquired in 2025 stem from innovative products.
These new offerings include various AI-focused tools designed to protect large-scale language models (LLMs) and applications, thus enabling organizations to access AI virtual assistants and streamline their cybersecurity processes. Just recently, they launched Zscaler AI Guard, created to prevent attacks, protect sensitive information, ensure compliance, and facilitate the safe adoption of AI.
The growing demand for Zscaler’s AI tools is reflected in recent performance reports. In the fourth quarter of fiscal 2025 (ending July 31), Zscaler’s revenue rose 21% year-over-year, hitting $719 million, while non-GAAP net income climbed nearly 24%. For the year, adjusted revenues increased by 26%, yielding $3.28 per share.
Looking ahead, there’s a solid possibility that revenue growth will accelerate even more. Zscaler’s revenue pipeline is expanding at a pace much quicker than actual revenues. The company’s remaining performance obligations (RPOs) surged by 31% year-over-year to $5.8 billion in the last quarter, contributing to a 23% annual revenue boost to $2.67 billion.
Consequently, Zscaler’s revenue prospects appear even more promising, as this figure represents contracts yet to be fulfilled by the end of the reporting period. It sheds light on why the company is on track for enhanced growth.
Zscaler’s stock saw a 50% increase in 2025. With a 12-month median target suggesting a rise of 19% to 321 points, this cybersecurity stock may sustain its upward momentum, especially given the positive developments in its revenue pipeline.
Surging AI memory demand propels this chip manufacturer forward
Chipmakers like Nvidia, Advanced Micro Devices, and Broadcom are supporting clients in training LLMs and managing AI inference applications in data centers. Micron Technology (mu) 5.76%)) plays a critical role in aiding these companies to develop robust chip systems capable of handling AI workloads.
Micron specializes in high-bandwidth memory (HBM) used in graphics processing units (GPUs) and custom chips. HBM enables data center chips to rapidly transfer large volumes of data while keeping energy consumption low—key features for tackling AI server workloads. Naturally, chip designers are increasingly including more HBM in AI chip designs.
Micron is benefiting directly from the rising demand for HBM, resulting in rapid revenue growth in recent quarters.
This trend is likely to persist for a couple of reasons.
First, HBM market revenues are projected to soar to $130 billion by 2030, a significant jump from just $4 billion in 2023.
Second, Micron seems to be capturing a larger slice of the market. HBM revenues have surged by over 50% sequentially in recent quarters, with analysts suggesting it could finish fiscal 2025 with a 20% market share. Even more optimistically, forecasts indicate Micron’s HBM revenues might grow sixfold over the next five years, potentially reaching $30 billion by 2030.
It’s not surprising that Micron’s developments are exceeding Wall Street’s growth expectations, especially within the generative AI mobile phone and personal computer markets.
For these reasons, investors might find it appealing to purchase Micron stocks now, considering a median price target of 154 points suggests a possible 30% increase in the coming year. The stock has already gained 40% in 2025, and its rapid growth trajectory is likely to continue.
