3 Undervalued Growth Stocks to Buy in December for 2026 Earnings Catalysts

As 2026 approaches, investors are increasingly turning their attention to stocks poised to capitalize on AI-driven demand, global electrification, and seasonal momentum. The semiconductor and cybersecurity sectors, in particular, are emerging as key battlegrounds for innovation and growth. Below, we analyze three undervalued growth stocks-ON Semiconductor (ON), Micron Technology (MU), and SentinelOne (S)-that align with 2026 earnings catalysts and December 2025 momentum trends.

1. ON Semiconductor (ON): Powering the AI Revolution

ON Semiconductor has positioned itself at the forefront of the AI/data center boom, with its 800V HVDC power solutions becoming critical for next-generation infrastructure. Q3 2025 results underscored its momentum: revenue hit $1.55 billion, a 6% sequential increase, with AI/data center revenue doubling year-over-year. This growth is fueled by partnerships like its collaboration with NVIDIA to advance high-efficiency power delivery systems.

Looking ahead, ON Semiconductor is projected to generate $1.4 billion in free cash flow in 2025, with AI revenue potentially reaching $500 million by 2026. The company's strategic acquisition of Vcore Power Technology further strengthens its AI capabilities. With margins stabilizing in automotive and industrial markets, ON is passing a critical inflection point, making it a compelling buy for investors seeking exposure to AI-driven electrification.

2. Micron Technology (MU): A Semiconductor Giant with Explosive Earnings Potential

Micron Technology, a leader in memory and storage solutions, is another semiconductor stock with significant 2026 catalysts. Analysts project a staggering 123.5% surge in earnings per share (EPS) by 2026, driven by AI's insatiable demand for high-performance memory chips. As AI models grow more complex, Micron's DRAM and NAND products are essential for data centers, cloud computing, and edge devices.

The company's recent financial performance reflects its strength: robust pricing power and capacity discipline have bolstered margins, while its R&D investments in advanced packaging and 3D chip architectures position it to outpace competitors. With the global semiconductor market expected to expand further in 2026, Micron's combination of technical innovation and earnings growth makes it a strategic addition to a momentum-driven portfolio.

3. SentinelOne (S): Cybersecurity's AI-Driven Growth Story

In the cybersecurity sector, SentinelOne stands out for its AI-powered threat detection and cloud-native solutions. The company's Singularity platform, which uses machine learning to neutralize threats in real time, has driven a 20%+ annual revenue growth rate. With global cyberattacks on the rise and enterprises accelerating cloud adoption, SentinelOne's focus on identity threat detection and endpoint protection is highly relevant.

SentinelOne's 2025 market valuation of $5.2 billion reflects its scalability and customer traction, but its forward revenue growth potential remains undervalued. As AI adoption expands, so does the need for robust security frameworks, making SentinelOne a prime candidate for 2026 momentum. Its December 2025 rally, fueled by improved operational efficiency and strong client acquisition, further validates its short-term appeal.

Conclusion: A Portfolio for 2026's High-Growth Sectors

The three stocks above-ON Semiconductor, Micron Technology, and SentinelOne-represent a diversified approach to 2026's earnings catalysts. ON and Micron capitalize on AI's infrastructure demands, while SentinelOne addresses the growing need for cybersecurity in an increasingly digital world. With seasonal momentum in December 2025 and strong fundamentals, these stocks offer a compelling mix of growth and resilience as the year unfolds.