3 weeks ago
15
Keithen Drury, The Motley Fool
Thu, July 16, 2026 astatine 12:05 PM CDT 4 min read
Sandisk (NASDAQ: SNDK) and Palantir (NASDAQ: PLTR) are 2 of the astir fashionable artificial quality (AI) investments connected the market, but some person displayed immoderate weakness lately. Sandisk is down astir 25% from its all-time highs established conscionable a fewer weeks ago, portion Palantir has dilatory declined from its highs acceptable past October. It's down astir 35%.
These 2 whitethorn some beryllium popular, but I deliberation lone 1 is worthy buying close now.
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Both businesses are booming
Sandisk and Palantir aren't competitors successful immoderate way; they person 2 wholly antithetic businesses.
Sandisk manufactures NAND memory, which is champion utilized successful scenarios that necessitate semipermanent information storage. Data centers person an immense request for monolithic storage, which is eating up a batch of NAND accumulation capableness to nutrient solid-state drives (SSDs). Lack of proviso and elevated request equate to soaring commodity prices, and that's the mechanics that has helped Sandisk's gross and profits soar implicit the past fewer months.
Two catalysts could origin Sandisk's banal to travel crashing down. First, the AI build-out could stall oregon wrapper up, and request for NAND representation would plummet, returning Sandisk to its aged request curve. With the AI build-out expected to past done astatine slightest 2030, I don't spot that happening anytime soon. Second, accrued accumulation capableness from Sandisk and its peers could summation supply, causing prices to fall, which would person a akin effect.
While the 2nd enactment is realistic, manufacture adjacent Micron Technology informed investors that it expects marketplace tightness to proceed successful the representation spot marketplace beyond 2027. That's large quality for Sandisk, and confirms the short-term concern lawsuit for the stock.
Palantir operates an AI bundle business. It uses AI to assistance businesses automate workflows and make applications that ingest ample amounts of information and make actionable insights. This bundle level is incredibly fashionable with the U.S. government, arsenic good arsenic commercialized clients. During its astir caller quarter, Palantir blew expectations retired of the h2o and reported 85% gross maturation -- with request coming from some commercialized and authorities sectors.
As much businesses and agencies follow an AI-first mindset, Palantir's bundle volition stay successful precocious demand, truthful its maturation is acold from over.
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