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Wall Street has a strange habit of worrying most when things are going well. We got a perfect example last week.
SanDisk Corporation (SNDK) reported fourth-quarter earnings of $39.25 per share, easily topping analysts’ expectations of $34.51 per share. Revenue surged 372% year-over-year to $8.97 billion, also beating estimates of $8.5 billion.
Those are the kinds of numbers that should send a stock higher. Instead, SanDisk shares fell 6.8% on Thursday – and another 3.7% on Friday.
Why? Well, SanDisk’s revenue outlook came in softer than expected.
SanDisk expects revenue between $10.3 billion and $10.8 billion for fiscal year 2027, while Wall Street was hoping for $10.82 billion.
But was that enough to justify the selloff after such a blowout quarter?
I don’t think that’s the whole story.
A growing number of investors seem convinced that the spectacular growth we’ve seen from AI-related companies simply can’t continue.
In other words, the better the numbers get, the more Wall Street worries that we’ve reached the peak.
But my guest on this week’s Navellier 蜜桃传媒 Buzz, Adam Johnson, thinks Wall Street has it backward.
Adam believes the recent weakness in semiconductor stocks was unwarranted, given the strength of corporate earnings. As he put it, the AI “freight train” is still gathering steam – and has not yet reached full speed.
I think he’s on to something. In fact, we cover why strong earnings aren’t always translating into higher stock prices – and whether Wall Street is underestimating just how much runway the AI boom still has left.
We also talk about where Adam sees opportunities as spending spreads into the power, storage and hardware needed to keep the AI buildout moving.
Click the image below to watch the latest episode of Navellier 蜜桃传媒 Buzz.
The Next Stop for the AI “Freight Train”
Adam said it best: The AI “freight train” is still gathering steam.
Demand for computing power continues to grow. Hundreds of new data centers are in the pipeline. And companies supplying the power, storage and hardware needed to keep them running are seeing extraordinary demand.
And here’s the important part…
If the AI freight train hasn’t even reached full speed yet, investors need to be thinking about where it’s headed next.
Because I believe the next stage of the AI boom could look very different from the one that made NVIDIA Corporation (NVDA) a household name.
Today’s AI boom is already putting enormous pressure on the infrastructure needed to support it. And an even more ambitious computing buildout is taking shape right now…
It involves a massive new computing initiative being assembled across the Department of Energy’s national laboratories – one designed to accelerate scientific breakthroughs in AI, energy, medicine and more.
I call it the
I put together this explaining what I believe it could mean for today’s AI leaders – along with the companies I believe could benefit most as this next phase unfolds.
Sincerely,
Louis Navellier
Editor, 蜜桃传媒 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
