The article suggests three smaller stocks could outperform Micron, which has more than tripled this year. Penguin Solutions (PENG) makes CXL memory products, and its net sales rose 68% year over year in fiscal 2026 Q4, with its shares up more than 190% this year. Sandisk (SNDK) specializes in NAND flash, is growing faster than Micron, has a lower market cap and a forward P/E below 6; in fiscal 2026 Q4 it authorized an additional $14 billion in stock buybacks, and its shares are up more than 450% this year. Fortinet (FTNT) is a cybersecurity company benefiting from AI, with shares up about 70% this year and a P/E of 65; it anticipates a $172 billion total addressable market for AI security.
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