Why would Sandisk and Nebius go higher after such large gains?

Sandisk benefits from an ongoing supply crunch in NAND memory as AI data center construction continues and is not expected to slow down, allowing the company to sustain price increases. Nebius, a neocloud provider, achieved 684% revenue growth year-over-year in Q1 2026, with Wall Street expecting 547% growth for 2026 and 233% growth for 2027.

How much is Amazon investing in data center expansion?

Amazon is spending $200 billion（約32兆円） on data center expansion this year and has already told investors it has users lined up for the next tranche of computing power it develops.

Which of these stocks trade at the lowest valuation multiples?

Microsoft trades for 19 times fiscal 2027 earnings, which is cheaper than the S&P 500's 21.5 times forward earnings multiple. Nvidia trades for 21.5 times expected forward earnings and 15 times next year's expected earnings, while Sandisk trades for 11 times expected earnings for fiscal 2027.

AI Stocks & MarketsYahoo Finance AIJul 2, 2026Jul 3, 2026, 06:00 JST

Five AI stocks to watch in July as market reassesses holdings

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3 Key Points

What happened
An investor has identified five AI stocks they believe will trade significantly higher by the end of 2026. Two standouts—Sandisk and Nebius—have already risen 780% and 187% respectively so far this year. The other three are Nvidia (up 3%), Microsoft (down more than 20%), and Amazon (flat for the year).
Why it matters
The broader AI investing landscape has been mixed, with big-name companies underperforming while smaller players with strong momentum have drawn attention. Sandisk benefits from NAND memory demand driven by AI data center construction; Nebius grew revenue at a 684% year-over-year pace in Q1 as a neocloud provider. For large-cap tech investors, Nvidia, Microsoft, and Amazon are trading at valuation multiples below their historical norms, which may signal opportunity if GPU demand, cloud growth, and AWS expansion continue.
What to watch
Amazon is spending $200 billion（約32兆円） on data center expansion this year and has already lined up users for the next tranche of computing power it develops. Nvidia trades for 21.5 times expected forward earnings and 15 times next year's expected earnings, while Microsoft trades for 19 times fiscal 2027 earnings—both well below the S&P 500's 21.5 times forward earnings multiple.

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FAQ

Why would Sandisk and Nebius go higher after such large gains?: Sandisk benefits from an ongoing supply crunch in NAND memory as AI data center construction continues and is not expected to slow down, allowing the company to sustain price increases. Nebius, a neocloud provider, achieved 684% revenue growth year-over-year in Q1 2026, with Wall Street expecting 547% growth for 2026 and 233% growth for 2027.
How much is Amazon investing in data center expansion?: Amazon is spending $200 billion（約32兆円） on data center expansion this year and has already told investors it has users lined up for the next tranche of computing power it develops.
Which of these stocks trade at the lowest valuation multiples?: Microsoft trades for 19 times fiscal 2027 earnings, which is cheaper than the S&P 500's 21.5 times forward earnings multiple. Nvidia trades for 21.5 times expected forward earnings and 15 times next year's expected earnings, while Sandisk trades for 11 times expected earnings for fiscal 2027.

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