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AI Stocks & Markets

Aug 23, 2026

AI Stocks & Markets

The Gist

NVIDIA's partnership with Blackstone to finance $500 billion in AI infrastructure signals accelerating investment in data centers, driving demand for related commodities like copper and semiconductor stocks to record highs. Memory chip makers like Micron and Western Digital have surged dramatically this year as AI storage needs intensify, though analysts debate whether valuations have already priced in future growth. BlackRock maintains its bullish outlook on US equities despite the AI sector's rapid rally, suggesting institutional investors still see opportunity in the broader market.

Today's Stories

  1. 1

    NVIDIA partners with Blackstone on $500B AI financing push

    In August 2026, NVIDIA announced partnerships with Blackstone, Apollo, BlackRock, Brookfield, Goldman Sachs, and KKR to create compute financing platforms that could mobilize over US$500 billion of third-party capital for AI infrastructure, with final agreements still to be executed. The partnership reinforces Blackstone's pivot toward digital infrastructure and energy transition alongside its existing data center, private credit, and private wealth commitments. It aligns with Blackstone's growth narrative of converting large inflows into durable fee income, though the article notes that choppy markets, geopolitics, and higher interest rates could still slow realizations and fundraising.

    Execution of final agreements between NVIDIA and the six financial partners. The partnership sits alongside Blackstone's evaluation of a potential US$1.50 billion to US$2.00 billion acquisition of Indian renewables platform Blupine Energy from Actis, signaling Blackstone's broader appetite for large-scale infrastructure assets.

  2. 2

    Copper Hits Record Highs on AI Data Center Demand; Three US Stocks to Watch

    London Metal Exchange copper prices rose to $14,363 mid-week on August 21, approaching the all-time high of $14,521, driven by supply tightness (Congo export restrictions, mine disruptions, falling inventories) and demand from AI data centers, power grids, and electrification. Copper mining stocks Freeport-McMoRan (FCX), Southern Copper (SCCO), and BHP (BHP) have risen in tandem. FCX's average realized copper price reached $5.78 per pound in Q1 2025, up 30% year-over-year, while its net cash cost fell to $1.91 per pound, showing how rising prices convert directly into earnings. SCCO's second-quarter cash cost after byproduct credits was only $0.05 per pound versus $0.63 last year—an even tighter margin. BHP's copper segment profit ($18.19 billion) surpassed iron ore ($14.53 billion) for the first time. These dynamics mean higher prices flow straight to the bottom line.

    JPMorgan projects copper prices could move toward $15,000 per tonne in the second half of the year, but the biggest near-term risk is a pullback—copper already hovers near record highs. SCCO trades near an all-time high with a technical breakout level around $219.04. BHP projects fiscal 2027 copper output of 1.65–1.80 million metric tons (down from 1.953 million in fiscal 2026), but plans to increase output by up to roughly 40% by 2035.

  3. 3

    80-year-old AC maker becomes AI darling under retired CEO's turnaround

    Vertiv, a data-center cooling company founded in 1946, has surged 10x in market value from under $11 billion to $109 billion since its early 2021 public debut. Under David Cote—a veteran industrialist who left Honeywell in 2019—the company pivoted to supply liquid direct-to-chip cooling for AI data centers, a technology it obtained through a 2021 partnership with British startup CoolTera and collaboration with Nvidia. Cote spotted a structural opportunity: pre-AI data generation was growing at 20% per year while data centers expanded at only 4%, signaling inevitable demand for new infrastructure. Unlike hyperscalers chasing headlines, he positioned a legacy industrial operator as essential to AI deployment—Vertiv's annualized return of 50.5% since the IPO ranks third in the S&P 500, behind only Nvidia (54.9%) and Comfort Systems (55.2%).

    Vertiv's near-bankruptcy in early 2023 (stock at $13, down 55% from $29) tested the strategy. Cote responded by installing engineer Giordano Albertazzi as CEO in January 2023 and raising R&D spending from 3% of sales to 6%—the same playbook he used at Honeywell, where he delivered shareholder returns 150% above the S&P 500 over 15 years.

  4. 4

    BlackRock stays bullish on US stocks amid AI boom, Fed decision looms

    BlackRock has expressed continued optimism about US equities, citing the artificial intelligence boom as a key driver. The statement comes as financial markets prepare for a major Federal Reserve interest-rate decision this week. BlackRock's bullish stance signals confidence in the earnings potential of US companies benefiting from AI investment and deployment. The timing is significant because the Fed's decision—whether to raise, lower, or hold interest rates—directly affects stock valuations and investor returns across all sectors.

    The Fed's announcement this week will be the immediate catalyst for market movement. Investors are closely monitoring whether the central bank's policy will align with or diverge from the optimistic growth narrative BlackRock is backing.

  5. 5

    WDC Stock Surges 145% YTD but Faces Valuation Debate Amid AI Storage Demand Shift

    Western Digital's share price has pulled back 17.47% over 30 days despite a year-to-date return of 144.77% and a 3-year total shareholder return exceeding 10x, as investors reassess AI storage demand and valuation following the sharp multi-year rally. The pullback reflects uncertainty over whether Western Digital can sustain pricing power in AI storage. The most-followed valuation narrative assumes net margins will settle near 23% over the next 10 years—well below today's 54% but far above the roughly 7% the wider tech hardware industry earns—suggesting the stock price already reflects optimistic assumptions about the oligopoly holding.

    Western Digital's valuation hinges entirely on the margin assumption. If hyperscalers pause capital expenditures or new storage capacity comes online faster than demand absorbs it, the AI-driven order book could change quickly. Current P/E of 17.8x appears cheap against the global tech industry's 19.8x and a fair ratio of 47.6x, creating conflicting signals about whether the stock is undervalued or the narrative around peak margins overstates earnings power.

  6. 6

    Micron Stock Fair-Valued After 228% Rally; 24/7 Wall St Sees 3% Upside Through 2027

    Micron Technology shares have surged 228.54% year to date, trading at $937.11. The semiconductor-memory company posted fiscal Q3 revenue of $41.46 billion (up 345.72% year over year) and guided Q4 to $50 billion in revenue and $31 in EPS. Management said DRAM and NAND conditions should "remain tight beyond calendar 2027"; HBM4 shipments have exceeded $1 billion, with HBM4E volume production expected in calendar 2027. Micron has locked in 16 Strategic Customer Agreements (SCAs)—take-or-pay contracts worth $100 billion in minimum cumulative revenue and backed by $22 billion in cash deposits—which provide pricing floors and margin protection. The bull case hinges on whether those SCAs hold through 2027 and deliver the $64.86 in forward EPS analysts model. At a forward P/E of 7, Micron trades far cheaper than storage peers Western Digital (26) and SanDisk (28), but the stock's high beta of 2.213 means it falls harder when sentiment turns.

    24/7 Wall St's 12-month price target is $966.70 (3.16% upside), rated a hold with 90% confidence. The bull scenario models $1,334.34 (42.39% upside) if HBM4E ramps on schedule; the bear scenario models $707.49 (−24.5% downside) if AI infrastructure spending softens and capacity sits idle. The tipping factor is whether management raises the fiscal 2027 SCA revenue floor or whether HBM pricing moderates faster than the "tight-through-2027" guidance implies.

What to Watch

Watch for the finalization of NVIDIA's agreements with its six financial partners and Blackstone's potential acquisition of Blupine Energy, which will signal whether infrastructure investment momentum can sustain alongside chip demand. Meanwhile, the Fed's policy announcement this week could reset market expectations—if it diverges from the growth-friendly stance backing major players like BlackRock, copper prices, Western Digital's margin assumptions, and the entire AI infrastructure narrative may face meaningful headwinds.

Sources

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