Meta's plan to sell its spare AI computing capacity triggered a sell-off in AI hardware stocks, causing Sandisk's stock to plummet 14% on July 2. Despite this, Sandisk's business shows record demand and $42 billion in remaining performance obligations.
Nvidia, Palantir, Google, Microsoft, and Apple are key players in the AI ecosystem. Nvidia CEO Jensen Huang highlighted a new AI bottleneck: handling complex tasks that require large amounts of data. Nvidia, Alphabet, and Microsoft are working on developing AI systems that can handle these tasks.
Meta's AI spending could become a windfall, with the company committing to spending $107 billion on infrastructure and signing multiyear cloud deals. Apple's AI-related moves, including dominating edge AI-capable smartwatch shipments, are driving demand for AI-related infrastructure.
Microsoft is one of the most mispriced AI stocks, with AI revenue growing at 30% YoY. Bespoke Labs, an AI post-training startup, raised $40M in funding to streamline the post-training phase of AI projects.
Key Takeaways
['Meta plans to sell its spare AI computing capacity, causing a sell-off in AI hardware stocks.', "Sandisk's stock fell 14% despite record demand and $42 billion in remaining performance obligations.", 'Nvidia, Palantir, Google, Microsoft, and Apple are key players in the AI ecosystem.', 'Nvidia CEO Jensen Huang highlights handling complex tasks requiring large amounts of data as a new AI bottleneck.', 'Meta commits to spending $107 billion on infrastructure and signs multiyear cloud deals.', 'Apple dominates edge AI-capable smartwatch shipments with 90% of the segment.', "Microsoft's AI revenue grows at 30% YoY, making it one of the most mispriced AI stocks.", 'Bespoke Labs raises $40M in funding for its AI post-training platform.', 'US investors to access SK Hynix through American depositary receipts (ADRs).', 'Hong Kong aims to make AI central to its economic development.']Sandisk stock plunges 14% in a day
Sandisk's stock fell 14% on July 2 due to a sell-off in AI hardware stocks. The drop was triggered by reports that Meta plans to sell its spare AI computing capacity. Despite this, Sandisk's business shows record demand and $42 billion in remaining performance obligations. The company's stock had risen over 700% this year before the drop.
Top AI stocks to buy before the next rally
Investors are looking for AI stocks to buy before the next leg of the rally. Nvidia, Nebius Group, Sandisk, Palantir, and Alphabet are five AI stocks that could benefit from the growing demand for AI technology. These companies are playing critical roles in the AI ecosystem, from chips and cloud computing to data storage.
Nvidia CEO highlights new AI bottleneck
Nvidia CEO Jensen Huang highlighted a new AI bottleneck: handling complex tasks that require large amounts of data. Three AI stocks that could benefit from solving this bottleneck are Nvidia, Alphabet, and Microsoft. These companies are working on developing AI systems that can handle complex tasks.
Meta's AI spending could become a windfall
Meta's AI spending could become a windfall if the company copies SpaceX's playbook. Meta has committed to spending $107 billion on infrastructure and has signed multiyear cloud deals. The company's ad business generated $201 billion in 2025 and continues to compound double digits.
High AI capex demand a multi-year cycle
Industry experts predict a multi-year cycle of high AI capital expenditure demand driven by Apple's cloud AI shift and the rise of specialized AI startups. The demand for AI-related infrastructure and application layers remains strong, with companies like Alphabet, Amazon, and Microsoft developing their own AI tools.
Apple dominates edge AI smartwatch shipments
Apple dominates edge AI-capable smartwatch shipments in Q1 2026, accounting for 90% of the segment. The company's Apple Watch is the default optimization target for many on-device health and fitness inference workflows.
XAI rebrands to SpaceXAI with new logo
XAI has rebranded to SpaceXAI with a new logo, X handle, and is now under SpaceX. Elon Musk is leading a group of investors making a bid for OpenAI.
Microsoft is one of the most mispriced AI stocks
Microsoft is one of the most mispriced AI stocks today, with AI revenue growing at 30% YoY. The company's Azure cloud platform is driving AI growth, with Azure revenue increasing by 27% YoY.
Bespoke Labs raises $40M in funding
Bespoke Labs, an AI post-training startup, raises $40M in funding. The company aims to streamline the post-training phase of AI projects with its platform.
US investors to access SK Hynix through ADRs
US investors will soon get access to SK Hynix, a South Korean memory chipmaker, through American depositary receipts (ADRs). SK Hynix is riding the AI boom with its memory chips.
AI central plank in Hong Kong's economic development
Hong Kong's Chief Executive John Lee says AI will be the central plank in the city's economic development. The city aims to connect the world with opportunities in an AI-powered future.
Sources
- Sandisk Stock Plunged 14% in a Day. Is the AI Memory Boom Cracking?
- 5 AI Stocks to Buy Before the Next Leg of the Rally
- Nvidia CEO Jensen Huang Highlighted a New AI Bottleneck. 3 AI Stocks That Could Benefit.
- Zuckerberg's Insane AI Spending Could Become a Windfall, If Meta Copies SpaceX's Playbook
- High AI Capex Demand a Multi-Year Cycle, Say Experts
- Apple Dominates Edge AI Smartwatch Shipments in Q1 2026
- XAI rebrands to SpaceXAI with new logo, X handle, under SpaceX
- Microsoft Is One of the Most Mispriced AI Stocks Today. Here’s Why It Is About to Surge Soon.
- AI post-training startup Bespoke Labs raises $40M in funding
- US investors will soon get access to SK Hynix, another memory maker riding the AI boom
- AI ‘central plank’ in Hong Kong’s economic development, John Lee says
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