Zacks Backs 5 AI Infrastructure Stocks as Hyperscalers Lift 2026 AI Capex to $750 Billion
Updated
Updated · Yahoo Finance · Jul 31
Zacks Backs 5 AI Infrastructure Stocks as Hyperscalers Lift 2026 AI Capex to $750 Billion
3 articles · Updated · Yahoo Finance · Jul 31
Summary
Zacks named five AI infrastructure picks—Micron, Seagate, Western Digital, Sandisk and Vertiv—arguing a recent AI-trade pullback has left them at more attractive valuations.
The call is tied to hyperscaler spending: five Magnificent 7 companies have raised 2026 AI capital expenditure to $750 billion, with that total projected to top $1 trillion next year.
Moody's estimates those five giants will pour more than $3 trillion into AI data centers over the next five years, underpinning demand for memory, storage and power-cooling equipment.
Micron stands out in the note because hyperscalers flagged memory and storage shortages; its gross margin rose to 84.9% last quarter from 74.9% in the prior quarter and 39% a year earlier.
For Micron, Zacks sees revenue growth of 91.4% and earnings growth above 100% for the year ending August 2027, illustrating the broader bet that AI infrastructure demand remains durable.