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AI Bottlenecks: 3 Stocks Poised to Gain from the AI Buildout
Key Takeaways
Some critical AI components are already sold out through 2026.
With the aging grid unable to meet energy demand, on-site providers will benefit.
Vertically integrated site providers are capturing a growing piece of the AI market.
Buy the AI Picks and Shovels
Long-time readers of mine know that my favorite fundamental stories are “pick and shovel” investments. For instance, during the gold rush, the businesses that sold the picks, shovels, and denim jeans required for gold mining often did better than the gold miners themselves, because, unlike mining, profits were predictable and consistent. Meanwhile, there are numerous examples throughout history. During the U.S. oil fracking boom of the early 2000s, energy workers were required to live in remote places, with little housing. This led to a surge in demand for RVs.
AI Spending is Soaring (& Will Continue to)
Despite constant fears of an internet-like bubble, America’s top tech companies continue to spend hundreds of billions of dollars on AI infrastructure to capture their share of the AI market. In 2025, the hyperscalers, which include Microsoft ((MSFT - Free Report) ),Alphabet ((GOOGL - Free Report) ), Amazon ((AMZN - Free Report) ),Meta ((META - Free Report) ), and Oracle ((ORCL - Free Report) ), accounted for $390 billion in CAPEX spending. Despite fears of overspending, AI CAPEX spending is expected to maintain momentum, reaching $515 billion this year and ~$600 billion in 2027.
Who will Benefit the most from AI Spending?
Below are 3 AI Bottlenecks to Watch
Flash Memory Stocks
Micron ((MU - Free Report) ) and Sandisk ((SNDK - Free Report) ) are the two leading suppliers of memory and storage infrastructure required for AI data centers. Storage and memory are critical ingredients needed for training AI models. Currently, demand is so high that Micron has already announced its high-bandwidth memory (HBM) is sold out for 2026. Meanwhile, SNDK shares jumped on Tuesday after Taiwan’s Phison CEO said NAND flash prices jumped 50% overnight amid the ongoing supply crunch.
Over the past four quarters, Sandisk has beaten Zacks Consensus Estimates by a staggering 371%!
Image Source: Zacks Investment Research
Meanwhile, after a brief multi-week pullback, MU and SNDK shares found support at their rising 10-week moving averages, suggesting the bulls are remain in control.
Image Source: TradingView
On-Site Energy Stocks
Amid the rapid data center buildout, legacy electric grid infrastructure is insufficient. Data centers require immense, reliable electricity. Bloom Energy ((BE - Free Report) ), provides high-efficiency, on-site solid oxide fuel cells to energy-hungry data centers. Currently, Bloom has a record backlog after a $5B deal with Brookfield. Wall Street analysts expect EPS to grow 81% in 2026 and triple-digits in 2027.
Image Source: Zacks Investment Research
Additionally, demand is likely to soar even further as the Trump Administration seeks to push big tech companies to provide their own data center power. BE shares are currently finding support at the 10-week moving average.
Image Source: TradingView
AI Data Center Sites
Data center sites are in high demand, as hyperscalers continue to spend billions on AI infrastructure. IREN ((IREN - Free Report) ), which pivoted away from Bitcoin mining, is a prominent AI infrastructure provider. The company offers its clients a unique combination of power capacity, hard-to-get NVIDIA ((NVDA - Free Report) ) GPUs (IREN recently bought 50,000 NVDA GPUs), and existing data center sites.
Image Source: TradingView
Bottom Line
The AI revolution is not just a software story – it’s a massive, physical industrial buildout. Memory, energy, and data center stocks stand to benefit the most.
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Image: Bigstock
AI Bottlenecks: 3 Stocks Poised to Gain from the AI Buildout
Key Takeaways
Buy the AI Picks and Shovels
Long-time readers of mine know that my favorite fundamental stories are “pick and shovel” investments. For instance, during the gold rush, the businesses that sold the picks, shovels, and denim jeans required for gold mining often did better than the gold miners themselves, because, unlike mining, profits were predictable and consistent. Meanwhile, there are numerous examples throughout history. During the U.S. oil fracking boom of the early 2000s, energy workers were required to live in remote places, with little housing. This led to a surge in demand for RVs.
AI Spending is Soaring (& Will Continue to)
Despite constant fears of an internet-like bubble, America’s top tech companies continue to spend hundreds of billions of dollars on AI infrastructure to capture their share of the AI market. In 2025, the hyperscalers, which include Microsoft ((MSFT - Free Report) ), Alphabet ((GOOGL - Free Report) ), Amazon ((AMZN - Free Report) ), Meta ((META - Free Report) ), and Oracle ((ORCL - Free Report) ), accounted for $390 billion in CAPEX spending. Despite fears of overspending, AI CAPEX spending is expected to maintain momentum, reaching $515 billion this year and ~$600 billion in 2027.
Who will Benefit the most from AI Spending?
Below are 3 AI Bottlenecks to Watch
Flash Memory Stocks
Micron ((MU - Free Report) ) and Sandisk ((SNDK - Free Report) ) are the two leading suppliers of memory and storage infrastructure required for AI data centers. Storage and memory are critical ingredients needed for training AI models. Currently, demand is so high that Micron has already announced its high-bandwidth memory (HBM) is sold out for 2026. Meanwhile, SNDK shares jumped on Tuesday after Taiwan’s Phison CEO said NAND flash prices jumped 50% overnight amid the ongoing supply crunch.
Over the past four quarters, Sandisk has beaten Zacks Consensus Estimates by a staggering 371%!
Image Source: Zacks Investment Research
Meanwhile, after a brief multi-week pullback, MU and SNDK shares found support at their rising 10-week moving averages, suggesting the bulls are remain in control.
Image Source: TradingView
On-Site Energy Stocks
Amid the rapid data center buildout, legacy electric grid infrastructure is insufficient. Data centers require immense, reliable electricity. Bloom Energy ((BE - Free Report) ), provides high-efficiency, on-site solid oxide fuel cells to energy-hungry data centers. Currently, Bloom has a record backlog after a $5B deal with Brookfield. Wall Street analysts expect EPS to grow 81% in 2026 and triple-digits in 2027.
Image Source: Zacks Investment Research
Additionally, demand is likely to soar even further as the Trump Administration seeks to push big tech companies to provide their own data center power. BE shares are currently finding support at the 10-week moving average.
Image Source: TradingView
AI Data Center Sites
Data center sites are in high demand, as hyperscalers continue to spend billions on AI infrastructure. IREN ((IREN - Free Report) ), which pivoted away from Bitcoin mining, is a prominent AI infrastructure provider. The company offers its clients a unique combination of power capacity, hard-to-get NVIDIA ((NVDA - Free Report) ) GPUs (IREN recently bought 50,000 NVDA GPUs), and existing data center sites.
Image Source: TradingView
Bottom Line
The AI revolution is not just a software story – it’s a massive, physical industrial buildout. Memory, energy, and data center stocks stand to benefit the most.