An investor's analysis highlights five AI stocks poised for higher valuations by year-end 2026, including Sandisk and Nebius—which have surged 780% and 187% respectively this year—and three major tech firms (Nvidia, Microsoft, Amazon) that have underperformed but trade at below-market valuation multiples. The case rests on sustained demand for AI infrastructure: Nebius is growing revenue at 684% year-over-year, and Amazon is investing $200 billion（約32兆円） in data center expansion with committed demand already lined up.
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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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