Deploying $500 in Stock: AI Boom Creates Opportunity in Two Tech Giants

The Case for Memory Chip Makers in the Generative AI Era

The artificial intelligence revolution isn’t just about the processors grabbing headlines. Behind every large language model powering ChatGPT and similar tools lies a critical but often overlooked component: memory chips. These semiconductors store the massive datasets required to train AI systems and provide the computational working space algorithms need to operate. This reality has created an unexpected opportunity for savvy investors looking to deploy capital in the AI infrastructure buildout.

Micron Technology (NASDAQ: MU) has emerged as a compelling play in this space, with shares climbing 193% so far this year as market participants finally recognize its potential. While most investors fixate on graphics processing units when considering AI hardware investments, memory specialists like Micron sit at the intersection of explosive demand growth and attractive valuation metrics.

Why Memory Demand Is About to Accelerate

The semiconductor industry is experiencing a notable shortage in memory products, according to analysis from manufacturing specialists. This supply constraint is intensifying as companies race to build out AI infrastructure. We’ve already seen pricing power materialize—one major competitor in Seoul recently implemented price increases as steep as 60% across its memory product lineup.

Micron’s fiscal 2025 results paint a striking picture: revenue surged nearly 50% year-over-year, driven almost entirely by data center appetite tied to AI deployment. Industry experts project this shortage could worsen through 2026, suggesting Micron has substantial runway to enhance margins through favorable pricing dynamics.

Trading at just 15.5 times forward earnings estimates, Micron’s valuation looks remarkably compressed when weighed against the scale of opportunity before it. For perspective, the broader Nasdaq 100 commands an average multiple of 26x, while the market’s favorite AI hardware provider trades at 28x projected profits.

Amazon’s Dual Play on AI Economics

When investing $500 in individual stocks, sometimes quality positioning beats quantity. Amazon (NASDAQ: AMZN) currently trades around $234 per share, meaning you’d acquire roughly two shares with your capital—or more if fractional shares are available through your broker.

Beyond its e-commerce dominance, Amazon has quietly become a major force in AI infrastructure. The company’s cloud division, AWS, serves as a critical enabler for AI companies building and training models. Additionally, Amazon maintains a substantial ownership stake in Anthropic, a leading developer of large language models that contractually directs its computing needs to AWS.

On the operational side, Amazon has deployed its millionth warehouse robot this year, marking a milestone in warehouse automation. These units assist human workers with packing and sorting tasks while utilizing AI algorithms to optimize travel patterns and coordination. Initial capital expenditures eventually convert into productivity gains and cost savings—a compounding advantage as deployment scales.

Amazon’s international business represents untapped potential. The global e-commerce operation generates $40.9 billion in quarterly sales but remains less than half the size of North American operations. Robotics and AI-driven efficiency improvements could accelerate international expansion without proportional cost increases, creating a powerful growth lever even if total sales growth moderates.

The Broader AI Infrastructure Opportunity

The artificial intelligence buildout will require enormous investments in both computational hardware and memory infrastructure over the coming years. Companies deploying $500 or larger amounts face a genuine choice between chasing the obvious mega-cap narratives or examining the less celebrated infrastructure providers that enable the entire ecosystem.

Both Micron and Amazon offer distinct entry points into this secular shift—one through pure semiconductor upside in a supply-constrained environment, the other through diversified exposure to cloud infrastructure, warehouse automation, and AI model development. Neither represents a lottery ticket speculation, but rather reasoned allocation to companies embedded in inevitable technology transitions.