Dear Reader,
Forget MAGA stocks.
Forget tariff plays.
The greatest "Trump Trade" of all time has nothing to do with politics.
It's about one material — buried in a small North Carolina town — that controls the future of AI, semiconductors, and every piece of advanced technology on Earth.
America holds over 80% of the world's supply.
And Trump is about to weaponize it.
When he does, Morgan Stanley estimates it could trigger a $10 trillion reshoring boom — the biggest wave of U.S.
manufacturing in history.
Apple, NVIDIA, and Amazon have already committed over $2 trillion in new American facilities because they see what's coming.
One former hedge fund manager has identified the best positioned companies to profit from Trump's strategic masterstroke.
This isn't about red or blue.
It's about the greatest wealth transfer of our lifetime.
And you have the rare opportunity to get in on the ground floor.
To continue reading, click here…
Regards,
Sarah Williams
Associate Editorial Manager, Banyan Hill Publishing
The AI in a Box Trade: Hardware Is the Next Boom
By Jeffrey Neal Johnson. First Published: 2/3/2026.
Summary
- SanDisk is demonstrating strong pricing power and high demand for flash memory as the need for local data storage grows in the new era of Edge AI.
- Dell Technologies has secured a massive backlog of orders for its specialized servers as corporate customers move to build their own internal AI infrastructure.
- HP Inc. offers a compelling value opportunity for investors through aggressive cost-saving initiatives and a generous dividend yield, as it awaits a PC refresh.
Investors spent the past year captivated by the explosive rally in the semiconductor sector. SanDisk (NASDAQ: SNDK), the flash-memory giant recently spun off from Western Digital (NASDAQ: WDC), has become the latest market obsession: the stock is up more than 700% over the last 12 months. After a massive earnings beat in early February, shares jumped another 15%, driven by strong global demand for data storage.
Seasoned investors know semiconductors are ingredients, not finished products — they are bought to be installed in devices. The AI market is undergoing a meaningful shift from large-scale cloud AI training to AI inference at the edge: running models locally on laptops, desktops and private AI servers.
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Get the full story on this opportunity now.That transition moves much of the capital-spending cycle away from pure chipmakers and toward Original Equipment Manufacturers (OEMs) that build the physical infrastructure. While many investors continue to chase the overheated semiconductor rally, the underlying data point to a compelling catch-up trade in downstream hardware.
The Signal: What SanDisk's Earnings Actually Mean
SanDisk's recent earnings offered a clear signal for the broader technology supply chain.
On Jan. 29, the company reported revenue of $3.03 billion, a 61% year-over-year increase, and delivered gross margins of 51.1%. That margin expansion signals pricing power: demand for high-speed storage is outpacing available supply.
That data point is a leading indicator for the hardware sector.
Demand for flash memory is not random — it's being driven by the specific needs of Edge AI. Unlike traditional software, large AI models require substantial amounts of fast, local storage so they can run efficiently without constant cloud connections.
Key reasons companies want to run AI locally include:
- Speed: On-device processing reduces latency.
- Privacy: Sensitive corporate data can stay on-premises rather than be uploaded to public clouds.
- Cost: Firms can avoid recurring cloud fees for every AI query.
If SanDisk is selling record amounts of memory at premium prices, it suggests corporations are upgrading hardware fleets in bulk. Those components will be installed in servers and PCs, which implies a coming sales boom for the device makers themselves.
Dell Technologies: Building the AI Factory
If SanDisk provides the signal, Dell Technologies (NYSE: DELL) provides the confirmation. For investors seeking AI exposure with lower execution risk than early-stage software names, Dell can feel like a flight-to-safety option.
Dell spans the cloud and the edge, and it has positioned itself as a preferred vendor for private enterprise deployments. The company reported a record $18.4 billion backlog for AI servers in a recent quarter, and year-to-date orders for AI servers have reached roughly $30 billion.
Those figures indicate the "AI factory" strategy is working: customers are not just experimenting, they are placing purchase orders for the hardware needed to run AI workloads on-premises.
As firms move to host AI internally to protect intellectual property, they need high-performance PowerEdge servers that Dell supplies.
For investors, a backlog of this magnitude provides visibility into future revenue and some insulation from short-term macro swings. While many software vendors struggle to monetize incremental AI features, Dell is selling the picks and shovels — tangible infrastructure with confirmed order flow and a dominant position in the commercial market.
HP Inc.: A High-Yield Opportunity in Disguise
Where Dell represents growth, HP Inc. (NYSE: HPQ) currently represents value. The stock has traded roughly 30% lower over the past three months, pressured in part by news that CEO Enrique Lores is leaving to join PayPal. Market overreactions to executive moves can create opportunities for investors focused on fundamentals.
The bigger story is HP's strategic plan. Alongside the leadership transition, HP unveiled a Fiscal 2026 plan that includes a workforce reduction of 4,000 to 6,000 employees and aims to deliver $1 billion in gross run-rate savings by the end of fiscal 2028.
That efficiency push matters because rising component costs — like the higher prices for memory noted earlier — can compress device makers' margins. Cutting $1 billion of overhead helps protect profitability in a higher-cost environment.
HP also provides income while investors wait. The company raised its quarterly dividend to $0.30 per share; with the stock trading near $19, that equates to roughly a 6.5% yield.
HP is arguably the purest play on the coming AI PC refresh cycle. As Microsoft (NASDAQ: MSFT) and others roll out updates that leverage advanced neural processing units (NPUs), many corporate fleets of older PCs will need replacement. HP's cost cuts and attractive yield offer downside protection with asymmetric upside from a hardware refresh.
The Hardware Supercycle Begins
The "AI in a box" trade outlines a clear path for capital rotation. SanDisk provided the initial signal that the world is short on storage because the hardware upgrade cycle has started. Dell's record backlog confirms tangible demand for servers, offering investors a growth vehicle with visible order flow. And HP offers a value-oriented way to play an inevitable PC refresh while earning a substantial dividend.
By looking beyond chipmakers to the OEMs building the final devices, investors can participate in the next phase of the AI revolution — Edge Computing — at valuations that are generally more attractive than those in the overheated semiconductor sector.
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