SanDisk: The Second Wave Is Underway
There is a lot of discussion about how long the current boom will last, driven by the expansion of AI data centers. At some point, there will be enough, or too many, and prices will crash; companies will lose money, and bankruptcies will follow. This has been the case with every stock market boom, from the railroads in the 19th century to the solar companies of three decades ago.
Analysts are split into two camps, though optimism currently still prevails. After all, an estimated USD 1 trillion is being invested by the hyperscalers. That is what the projections indicate, and someone has to profit from it. In general, however, it is worth taking a closer look at the bulls and bears. Some predict a boom lasting for years that will pull many other industries along with it. If that is true, it is time to ride the wave! Pessimists, however, point out that the focus will shift. Currently, high capital expenditures (CapEx) are driving corporate profits. The maturity phase is expected to begin in 2027, when the market shifts from pure hardware purchases to long-term operating costs (electricity contracts, cooling, maintenance). The pace of growth is therefore likely to slow at some point over the next two years, though the high level of spending will remain.
SanDisk is certainly one of the beneficiaries of the CapEx phase. The memory chip specialist is one of Wall Street’s star performers and has made many investors wealthy. Recently, however, there have been some hiccups. At times, the stock lost about a third of its value from its all-time high. Fundamentally, though, the story remains intact. In the company’s fourth fiscal quarter (Q2), the group significantly exceeded analysts’ expectations. Earnings per share came in at USD 39.25, well above the market consensus of USD 34.96. In the current quarter, earnings are expected to rise to between USD 44.00 and 46.00 per share. As long as prices for storage media remain high, SanDisk should continue to increase its profits. Most recently, the share also ended its downward trend and has recouped nearly 60% of its loss from the low over the past three weeks. SanDisk remains one of the most speculative AI stocks! Everything hinges on how long the AI hyperscalers’ capital expenditures continue to rise.
First Hydrogen: Where AI Meets Robotics and Hydrogen
Whether it is robotics, drones, or artificial intelligence: these massive technology trends of our time are not only transforming the economy and society but are also increasingly converging. A drone without AI is virtually unthinkable today. And a robot would hardly be possible with this level of efficiency and capabilities without a “self-thinking” computer. New possibilities are also constantly being explored in the area of propulsion. A drone delivering food or packages with a diesel engine is no longer conceivable today. As a result, alternative propulsion systems are increasingly taking center stage.
One alternative is hydrogen. The technology is constantly improving, and in niche areas such as heavy-duty commercial vehicles, experts see major advantages over batteries. First Hydrogen now also aims to benefit from this. The company plans to leverage its expertise to expand into robotics and unmanned ground vehicles. Specifically, this involves unmanned ground robots and protection against aerial drones. To this end, the Canadian company has entered into a partnership with the robotics firm Exodus Actuation Solutions Inc. A binding letter of intent (LOI) was published a few weeks ago. Through this agreement, First Hydrogen secures worldwide rights to patented transmission and drive technology, as well as to a modular platform for unmanned ground drones. Thanks to a flexible design featuring a foldable chassis, the planned vehicle is expected to perform well when operating in difficult terrain. Since June, First Hydrogen has also been working to integrate AI capabilities for autonomous navigation, object recognition, and support for drone defence systems into the platform.
This move establishes the rapidly growing defence and security sector as another pillar of the company’s business. The project’s further development will determine whether this approach goes into mass production and generates significant revenue. First Hydrogen had already benefited from operational progress earlier this spring. At that time, the share rose by more than 40% within a matter of weeks. With the war in the Persian Gulf, these gains were sold off, leading to profit-taking. With a market capitalization equivalent to approximately EUR 22 million, First Hydrogen belongs to the micro-cap class. Further operational progress could quickly catapult the share back up.
Lundin Mining: Copper Price at an All-Time High
Copper is also a beneficiary of the AI boom. The price of the red metal closed near its all-time high last week. Expanding data centers is not possible without copper cables. But there are additional factors at play with copper. Old mines are producing fewer and fewer metals as ore grades decline. There are only a few new mines in the industry’s pipeline, and, not least, recent landslides in Indonesia and Chile have restricted production and, in turn, supply.
Lundin Mining is one of the beneficiaries of this trend. The Canadian-Swedish company has not only built up a portfolio of highly profitable copper mines but also an impressive pipeline of projects. Few other companies in industry can match this combination. After all, well-performing mines are rare, and a pipeline of new deposits set to come online promises growth in the coming years.
Lundin Mining focuses on established mining jurisdictions such as Chile, Portugal, Sweden, and Argentina. Currently, the Vicuña District in Argentina, one of the world’s largest undeveloped deposits, is being developed.
In the second quarter, Lundin posted solid results. Revenue rose 48% to USD 1.21 billion, and adjusted net income increased by 133% to USD 257 million. Free cash flow more than doubled compared to the same quarter last year, reaching USD 360 million. The company plans to continue exercising strict cost discipline. Guidance for 2026 calls for cash costs of USD 1.90 to UDS 2.10 per pound. The current price is well above USD 6 per pound. The stock is a top pick for copper investors, with 88% of its revenue coming from this sector. For investors looking to ride the copper wave, this could be an interesting addition to the portfolio.
With SanDisk, investors can continue to bet on the AI boom. However, the recent rally appears too dynamic, and profit-taking by short-term traders is a risk. First Hydrogen is venturing into the field of robotics with AI. The stock is currently being overlooked by the market, offering patient investors a chance to buy in. Anyone looking to bet on copper as the metal of the moment should be well-served by Lundin Mining. Its attractive pipeline should continue to drive growth in the coming years.
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