Nvidia and Sandisk Capitalize on AI Boom
Nvidia and Sandisk are experiencing substantial growth due to rising demand for their chips used in AI data centers, with Nvidia projecting a 95% revenue increase to $91 billion in the current quarter, and an 88% rise in earnings per share for the fiscal year set at $8.94. Sandisk, also benefiting from the AI boom, expects significant demand for its NAND flash storage, with projected revenue in the AI storage market soaring to nearly $322 billion by 2035.
In 2023, major tech companies including Alphabet, Amazon, Microsoft, and Meta plan to spend a collective $725 billion on capital expenses, a 77% increase from last year. Analysts estimate that Sandisk will see sales of enterprise solid-state drives grow by 35% annually through 2030, fueled by a projected 11x increase in SSD content per server due to AI training needs.
Nvidia and Sandisk are both trading at attractive forward earnings multiples—25x and 22x, respectively—suggesting potential upside for investors. With increased demand and the ongoing chip shortage expected to last until 2030, both companies are well-positioned for continued earnings growth in the AI-driven market.
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