2 Hypergrowth Tech Stocks to Buy in 2026: Undervalued AI and E-Commerce Leaders Amid Market Corrections

The AI and e-commerce tech sectors are poised for transformative growth in 2026, even as market corrections create opportunities for investors to acquire undervalued leaders. While Q4 2025 volatility saw the Technology sector decline 1.8% due to concerns over AI infrastructure spending returns, companies with clear AI-driven earnings growth and robust competitive advantages have emerged as standout performers. Two such stocks-Micron Technology (MU) and Alphabet (GOOG)-stand out for their strategic positioning in AI infrastructure, e-commerce integration, and compelling valuations.

1. Micron Technology (MU): The HBM Powerhouse Fueling AI's Next Wave

Micron Technology has solidified its role as a critical enabler of the AI revolution through its leadership in high-bandwidth memory (HBM). With AI workloads demanding exponentially more memory capacity and speed, Micron's HBM solutions are in high demand. In Q1 FY 2026, the company reported record revenue of $13.6 billion, a 57% year-over-year increase, and raised its 2026 capital expenditure plan to $20 billion to meet surging demand.

The company's HBM market share is projected to grow from $35 billion in 2025 to $100 billion by 2028, with Micron securing 21% of this expanding market. This growth trajectory is underpinned by its aggressive investment in advanced manufacturing and its ability to deliver high-value memory products at scale. Analysts project Micron's revenue could reach $53.6 billion and earnings $13.6 billion by 2028, requiring 16.6% annual revenue growth-a target that appears achievable given current momentum.

Micron's valuation also appears attractive, with a forward P/E ratio of 7.1x, significantly lower than the broader tech sector average . This discount reflects market skepticism about memory cycles, but the company's dominance in AI infrastructure and its ability to capture pricing power in HBM suggest this undervaluation is temporary.

2. Alphabet (GOOG): AI-Driven E-Commerce and Cloud Dominance

Alphabet's AI strategy is reshaping its core businesses and unlocking new revenue streams in e-commerce and cloud computing. The company's Gemini AI models and custom Tensor Processing Units (TPUs) are driving efficiency gains across Google Search, YouTube, and Google Cloud, while its AI-optimized infrastructure positions it to capitalize on the $155 billion Google Cloud backlog-representing multiyear revenue visibility .

Alphabet's AI-driven cloud business is transitioning into a high-margin growth engine. Over 70% of its cloud customers already use AI products, and analysts project the company could generate $13 billion annually for every 500,000 TPUs deployed by customers. With expectations for 5 million and 7 million TPUs to be rented out in 2027 and 2028, respectively, Alphabet's AI infrastructure is set for exponential scaling.

The company's competitive advantages extend beyond hardware. Alphabet's control of 3 billion monthly active Android devices and 2.7 billion YouTube users creates a vast data ecosystem that fuels AI innovation and monetization. Analysts have raised Alphabet's fair value estimate to $330.24 in 2026, citing a 13.18% modeled revenue growth rate and its structural cost edge from custom TPUs. While its forward P/E ratio of 27.9x is higher than Micron's, this valuation is justified by Alphabet's scale, recurring revenue streams, and AI-driven differentiation.

Why These Stocks Thrive in a Correction-Prone Market

Both Micron and Alphabet are well-positioned to weather market volatility due to their strong cash flows, strategic AI integration, and long-term growth narratives. During Q4 2025, while large-cap tech stocks faced corrections, AI infrastructure players like Micron and Alphabet outperformed due to their direct ties to high-margin, high-growth segments.

Micron's constrained supply of HBM and Alphabet's vertical integration in AI chips and data ecosystems provide durable moats. Additionally, both companies benefit from hyperscaler demand for AI deployment, with investors increasingly prioritizing firms that demonstrate clear ROI from AI investments.

Conclusion

As the AI and e-commerce sectors navigate market corrections, Micron Technology and Alphabet emerge as compelling hypergrowth opportunities. Micron's leadership in HBM and aggressive capital spending position it to dominate the AI memory market, while Alphabet's AI-driven cloud and e-commerce strategies offer scalable, high-margin growth. For investors seeking undervalued leaders with strong fundamentals and long-term potential, these two stocks represent a rare combination of innovation, resilience, and strategic foresight.