Magnificent Seven's $725 billion collective capex spend drives Nvidia and Sandisk as AI infrastructure beneficiaries

Alphabet, Amazon, Microsoft, and Meta are poised to spend a collective $725 billion on capital expenses this year, up by 77% from last year's record outlay, with total Magnificent Seven capex expected to exceed $750 billion in 2026.

Nvidia's Vera Rubin AI processors are deployed by major hyperscalers and pure-play AI companies such as OpenAI and Anthropic; Sandisk benefits from demand for NAND flash storage solutions, with the AI-focused storage market's revenue projected to increase from $36 billion last year to almost $322 billion in 2035.

Nvidia reported 85% year-over-year revenue growth in Q1 fiscal 2027 and trades at 25 times forward earnings; Sandisk trades at 22 times forward earnings and is expected to see an 11x increase in SSD content per server between 2024 and 2030 driven by AI training needs, according to McKinsey.