Listen to the audio version of this article (generated by artificial intelligence).
Have you heard of Ferdinand de Lesseps?
He was a French orientalist diplomat who later developed the Suez Canal. But when work began on the Suez Canal in 1859, skeptics described it as the most expensive ditch in history.
To be fair, the cost He was astronomical. The Lesseps project cost $100 million in 1869, nearly double the original estimate, and bankrupted the French development company that built it.
But it doesn’t matter who went bankrupt in building the Suez Canal…
Once the canal was built, every ship crossing between Europe and Asia had exactly two choices: the Suez Canal or the Suez Canal arrest.
The infrastructure created captive and permanent demand, and coal suppliers, dry dock services, and port operations at both ends collected tolls over the next century.
Bearish companies at the forefront of AI memory and cloud infrastructure fall prey to the same blind spot. They’re keeping an eye on the stock price rather than the $725 billion in super-rapid capital expenditures that have already been committed. Capital has to land somewhere, and this “somewhere” is increasingly increasing SanDisk (Your support) fab and i won’t‘(NBIS) Data centers.
This is the line through this week Being exponentialwhich we just launched in a brand new format. Our team shortened the show, simplified the discussion topics, and created this episode of Being Exponential with Luc Lango About five stories stock.
Most importantly, we will now have an additional podcast every week! From now on, you can expect it to arrive in your inbox on Wednesdays and Fridays.
In the last episode we walk around Intel Corporation (Intech), Palantir Technologies Inc. (Belter), Duolingo Company (by), Nepheus Nevada Collectionand SanDisk company
We cover bullish, neutral and bearish trends.
But there are two AI infrastructure names as the market continues to try (and fail) to call the top…
Check out the podcast by clicking on the video below:
Why SanDisk (SNDK) continues to challenge the “top memory” call.
The SanDisk chart is a museum of early obituaries. Traders reached the top in October 2025. Then again in February, followed by March and early April. Each time, the stock fell hard, sometimes by 25% or more, only to hit new highs. Bear’s hypothesis is basically that “memory is cyclical and cycles end.”
yet, Microsoft Corporation (MSFT), Meta Platforms Inc. (dead), Amazon.com Inc. (Amzn)and Alphabet Company (Google) It has targeted approximately $725 billion in 2026 capital expenditures for AI infrastructure. This is a once-in-a-generation creation, and a meaningful slice of every infrastructure dollar lands in the memory pool.
The evaluation tells…
SanDisk’s stock price ranges from approximately $50 to $1,400, yet its forward price-to-earnings (P/E) ratio is close to nine. Earnings are rising, as multiples have not expanded at all.
As long as this continues, SNDK stock has more room to run.
Nebius (NBIS): No one’s talking about Neocloud…yet
If the SanDisk is the shovel, the Nebius is the rental mule.
It emerged from Yandex’s old technology assets after the Russian invasion of Ukraine, Nebios It rebuilt itself as a “neocloud,” or high beta game, running on the same hyperscale capex wave.
The numbers are almost cartoonish: Revenues are on track to grow more than 500% this year, with margins rising from roughly 40% to 59% by 2028. However, the stock trades at about 16 times EBITDA. Sixteen.
Technically, the chart has just executed a V-shaped recovery from its previous all-time high near $135, turning what was resistance into a new floor.
Both names share a pattern: violent, disturbing retreats followed by face-tearing rallies.
SanDisk’s price has dropped 25% – more than once this cycle. Nebios went back and forth from $90 to $166 and then back to $135 in a matter of weeks.
Anyone trying to chase these stocks to the top is hurt.
Anyone who has treated declines as opportunities has done well.
What else is in this week’s episode?
It goes into the whole story, including why we should be so optimistic Intel Corporation (Intech) Transformation, why? Palantir Technologies Inc. (Belter) It needs to be restored 200 days before we get to it, and why Duolingo Company (by) He may be the poster child for “SaaSmagedon.”
He watches The full episode of Being exponential on YouTube to get the full picture, including specific entry levels and technical signals to watch before entering.
FAQ: AI Infrastructure Stocks in 2026
What are AI infrastructure stocks?
AI infrastructure stocks are companies that provide the physical hardware, cloud computing, and memory chips that power AI systems. Think of them as playing in the AI boom – they benefit from creating no matter which AI models win.
Why is SanDisk (SNDK) an AI infrastructure play?
SanDisk makes memory and storage solutions used in AI data centers. With hyperscalers targeting $725 billion in AI capex for 2026, demand for high-bandwidth memory is structural rather than cyclical. SanDisk trades at nearly nine times forward earnings despite massive revenue growth.
What is Nebius Group (NBIS)?
Nebius Group NV is a new cloud company that emerged from the former Yandex technology assets. It provides high-performance cloud infrastructure for AI workloads and is growing revenues by more than 500% year over year.
Is the AI infrastructure business over?
Multiple pullbacks in 2025 and 2026 sent bears to the top of AI infrastructure stocks. However, a wave of ultra-large capital expenditures of $725 billion and still-compressed valuations (SanDisk at 9x forward EBITDA, Nebius at 16x forward EBITDA) suggest the structural build still needs more work.
