Dear Fellow Investor,
Wall Street's obsessed with the WRONG AI play.
They're dumping billions into yesterday's tech...
While Trump just greenlit what could be the most disruptive computing shift in history.
I'm George Gilder. For over 40 years, I've made my living spotting tech revolutions early.
Back in 1991, I told people smartphones would reshape civilization. They thought I was insane.
In 1994, I predicted streaming would wipe out video rental stores. Wall Street rolled their eyes.
In 1996, I said Amazon would dominate retail when it was still "just selling books." Investors laughed.
But investors laughed all the way to the bank:
- Apple: 249,900% gains since IPO
- Netflix: 112,700% after going public
- Amazon: 216,100% since its IPO
Right now, I'm watching something even MORE massive take shape…
The end of the data center era.
Three companies are behind it...
Constructing what I'm calling the "Trillion Dollar Triangle" featuring…
- Wafer-scale processors delivering 100X the speed of today's systems
- 90% cuts in energy consumption
- Tech that ELIMINATES the need for giant AI data centers
Listen, this might be the single biggest opportunity I've tracked in four decades.
>>Grab the three company names before the herd figures it out<<
To the future,
George Gilder
Editor, Gilder’s Technology Report
These 5 Stocks Are at the Center of the AI Supply Squeeze
By Ryan Hasson. Publication Date: 2/23/2026.
Key Points
- AI adoption is accelerating globally, but infrastructure buildout is lagging, creating bottlenecks across various industries.
- Companies like SanDisk and Micron are benefiting from supply constraints, which are strengthening pricing power and earnings momentum.
- ASML and GE Vernova sit at critical chokepoints in chip manufacturing and power generation, positioning them to gain as AI demand continues to scale.
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Artificial intelligence continues to dominate headlines, boardrooms, and capital markets. It is not just a buzzword but a structural technological shift reshaping industries in real time. Yet despite the excitement, adoption remains relatively early. According to research published by Microsoft (NASDAQ: MSFT), only about one in six people currently use generative AI tools. Even so, global AI adoption grew roughly 20% in 2025 to nearly 400 million users worldwide.
That figure highlights two key realities: demand is accelerating rapidly, and the runway for further adoption remains enormous. While usage is concentrated in developed markets, emerging economies represent a major long-term expansion opportunity. As models become more capable and real-world use cases expand, AI will likely become more embedded in daily workflows, enterprise systems, and consumer applications.
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With that surge in adoption comes a second-order effect: infrastructure strain. AI models require vast compute power, memory bandwidth, data storage, specialized chips, and electricity. In several parts of the supply chain, demand is already outpacing supply. When bottlenecks emerge, pricing power often follows.
Here are five stocks positioned at critical pressure points in the AI ecosystem that could benefit from sustained demand and potential supply constraints.
Sandisk: Storage at the Core of AI
Sandisk (NASDAQ: SNDK) has been one of the market's strongest performers this year after ranking as the S&P's top performer in 2025. The company develops NAND flash memory solutions used across data centers, enterprise systems, mobile devices, and edge computing platforms.
AI workloads are storage-intensive: training and running large language models requires rapid access to massive datasets. As hyperscalers and enterprises scale AI deployments, demand for high-performance storage rises in tandem.
A global shortage of NAND flash memory collided with accelerating AI-driven demand last year, pushing NAND prices nearly double in the second half of the year and creating a powerful earnings tailwind.
In its latest quarterly report, released Jan. 29, 2026, Sandisk posted EPS of $6.20, well above analyst expectations of $3.31. Revenue rose 61% year over year to $3.03 billion, beating consensus estimates. Guidance for the following quarter called for revenue of $4.4 billion to $4.8 billion, with gross margins projected at 65% to 67%.
With supply still tight and AI-related storage demand growing, Sandisk remains directly exposed to one of the most important infrastructure layers in the AI stack.
Micron Technology: High Bandwidth Memory Powerhouse
Micron Technology (NASDAQ: MU) is another memory-focused beneficiary of AI-driven bottlenecks. The company is a leading supplier of high-bandwidth memory, a critical component in advanced AI accelerators and GPUs.
High-bandwidth memory enables processors to move vast amounts of data quickly, a necessity for training and inference at scale. Micron is one of only a handful of global suppliers in this segment, giving it meaningful leverage when supply tightens.
Shares have climbed sharply — roughly 50% so far this year. In its fiscal first-quarter 2026 results, Micron reported EPS of $4.78, beating expectations of $3.77. Revenue surged nearly 57% year over year to $13.64 billion, topping forecasts.
Analysts expect continued strength, with upcoming estimates projecting significant year-over-year growth. Institutional ownership remains high, and the stock has attracted substantial net inflows over the past 12 months.
As AI models become larger and more complex, memory intensity per chip continues to increase. That structural trend reinforces Micron's positioning in a market where supply constraints can translate directly into pricing power.
Nebius: Scaling AI Native Infrastructure
Nebius Group (NASDAQ: NBIS) offers exposure to a different segment of the AI ecosystem: full-stack AI infrastructure. The company provides AI-native cloud services, developer tools, and large-scale data center capacity tailored for training and running AI models. As enterprises increasingly seek purpose-built infrastructure instead of generic cloud compute, Nebius is expanding aggressively.
The company is targeting between 800 megawatts and 1 gigawatt of connected capacity by the end of 2026, with contracted power guidance recently raised to more than 3 gigawatts. That scale matters in an environment where AI data center capacity is increasingly scarce.
In its latest quarterly report, Nebius delivered year-over-year revenue growth of more than 500%, despite a slight revenue miss attributed to timing-related capacity. Management reiterated its ambitious 2026 annual recurring revenue target of $7 billion to $9 billion and emphasized that demand continues to outpace supply.
Longer-duration contracts, improved pricing, and strong enterprise demand suggest capacity constraints could continue to support favorable economics. Shares have surged more than 100% over the past year, reflecting growing investor recognition.
ASML Holding: The Gatekeeper of Advanced Chips
ASML Holding (NASDAQ: ASML) sits at perhaps the most critical chokepoint in the semiconductor supply chain. The Dutch company manufactures advanced photolithography systems, including extreme ultraviolet (EUV) machines required to produce leading-edge chips. Without ASML's equipment, advanced AI processors cannot be manufactured at scale.
Chip designers may capture headlines, but they rely entirely on ASML's systems to fabricate cutting-edge semiconductors. The company's near-monopoly in EUV lithography gives it unique pricing power and strategic importance.
As global demand for AI chips surges, semiconductor foundries must invest heavily in new fabrication capacity, which in turn drives sustained demand for ASML's systems. Shares have rallied strongly over the past year, and analysts remain broadly constructive on the long-term outlook.
GE Vernova: Powering the AI Revolution
GE Vernova (NYSE: GEV) may not design chips or build servers, but it addresses another emerging bottleneck: electricity. AI data centers consume enormous amounts of power. As hyperscalers race to expand capacity, reliable and scalable power generation becomes essential, and in several regions grid infrastructure is already strained.
GE Vernova designs and services equipment across the power generation and grid value chain, including gas turbines, renewable platforms, and grid modernization technologies. Its positioning makes it a pick-and-shovel play on the physical infrastructure required to sustain AI growth.
The stock has surged more than 130% over the past year and continues to trade with growth-like characteristics. In its most recent quarterly report, GE Vernova significantly exceeded earnings expectations, in part thanks to a one-off tax benefit, and raised its multi-year outlook. Management projects 2026 revenue between $44 billion and $45 billion, with longer-term expansion targets exceeding $56 billion by 2028.
As AI-driven electricity demand accelerates, companies enabling generation and transmission capacity could remain in focus.
Where Demand Meets Constraint
AI adoption is expanding rapidly, but infrastructure buildout is struggling to keep pace. Memory, advanced chips, data center capacity, and power generation are all under pressure.
When demand outstrips supply, pricing power often strengthens. Sandisk and Micron sit at the heart of memory bottlenecks. Nebius is scaling AI-specific infrastructure in a capacity-constrained market. ASML controls essential chip-manufacturing technology. GE Vernova powers the energy backbone that enables AI.
If AI demand remains durable and adoption continues climbing globally, these companies are positioned not just to participate, but potentially to thrive amid the bottlenecks shaping the next phase of the AI revolution.
Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech Sector
Reported by Jeffrey Neal Johnson. Published: 2/24/2026.
Key Points
- Johnson & Johnson has maintained an impressive streak of increasing its dividend payouts for generations, rewarding long-term shareholders with reliable income.
- Management is driving future expansion by focusing on high-growth pharmaceutical assets and cutting-edge medical technologies, such as robotics.
- Investors looking for shelter from market volatility benefit from a stock that historically moves much less than the broader market indices.
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While the technology sector faces a renewed wave of volatility driven by artificial intelligence (AI) scare trades and valuation concerns, a different story is unfolding in the healthcare sector. Investors fleeing the jittery price swings of high-growth tech stocks are finding shelter in a familiar name that is quietly outperforming. Johnson & Johnson (NYSE: JNJ) is trading near all-time highs of roughly $245 per share, creating a divergence that has caught Wall Street's attention.
This rally runs counter to the common perception of the healthcare giant as a slow-moving, "boring" stock. Over the past 30 days, shares have risen by about 14%, significantly outpacing the broader market during a period of uncertainty. The price action suggests institutional money is rotating out of riskier assets and placing a premium on stability, steady cash flow, and consistent execution.
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For investors watching the ticker today, Feb. 24, 2026, it's important to note a specific calendar event: today is the ex-dividend date for Johnson & Johnson. That means the stock price will likely drop by the upcoming dividend amount, $1.30 per share — a mechanical market adjustment rather than a reflection of business performance. For income-focused investors, this technical dip often represents an attractive entry point rather than a signal to sell.
64 Years of Unbroken Growth
The main case for holding Johnson & Johnson through turbulent market cycles is its financial stability and role as a portfolio stabilizer. The company belongs to an elite group of equities known as Dividend Kings — firms that have increased their dividend payout for at least 50 consecutive years.
Johnson & Johnson has raised its dividend for 64 consecutive years, a record that spans multiple recessions, market crashes, and geopolitical shocks. That reliability is rare in a market often dominated by speculative growth stories.
The stock currently yields about 2.12%, based on an annual payout of $5.20 per share. While higher yields can be found in bonds or riskier sectors, J&J's appeal is the combination of growth and safety. Management projects free cash flow of roughly $21 billion in 2026, a level of cash generation that helps ensure the company can continue to pay shareholders, invest in research, and manage legal expenses without heavy borrowing.
For risk-averse investors, one of the most compelling metrics is the stock's beta. Beta measures how much a stock moves relative to the overall market (S&P 500). A beta of 1.0 means a stock moves in lockstep with the market. Johnson & Johnson currently has a beta of just 0.35, historically about 65% less volatile than the broader market. When tech stocks swing wildly, J&J tends to hold its ground. Adding JNJ to a tech-heavy portfolio acts as a mathematical shock absorber, dampening overall volatility while retaining equity exposure.
Beyond the Patent Cliff: The Road to $100 Billion
A common misconception about "safe" stocks is that they cannot grow. Johnson & Johnson is disproving that with a strategic pivot that is paying off. Management has issued strong guidance for 2026, projecting full-year revenue to surpass the $100 billion mark for the first time in company history. Alongside this revenue milestone, the company expects adjusted earnings per share (EPS) of about $11.53.
This growth is driven by a successful reinvention of its pharmaceutical division, now branded as Innovative Medicine. For years, investors worried about the patent cliff after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Typically, when a top drug faces generic competition, revenue collapses. J&J, however, has absorbed that decline through the rise of new blockbusters.
Two key assets are driving this resilience:
- Darzalex: This oncology powerhouse generates roughly $14 billion in annual sales, cementing J&J's leadership in treating multiple myeloma and becoming a foundational therapy worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year remission data for ulcerative colitis. Those clinical results are crucial to retaining market share in the competitive immunology space as older drugs fade.
The Tech in MedTech: High-Margin Technologies
The growth story extends beyond pharmaceuticals into the MedTech division, which has shifted focus toward higher-growth, higher-margin technologies. A prime example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio.
Shockwave uses intravascular lithotripsy (IVL) technology. In simple terms, it employs sonic pressure waves to break up calcified plaque in arteries — a procedure analogous to kidney-stone treatment. This represents a significant upgrade over traditional angioplasty balloons. By owning this technology, Johnson & Johnson has secured a high-growth asset that complements its existing cardiac and surgical businesses.
Additionally, the company is advancing in robotics. The submission of its Ottava robotic surgical system for FDA approval signals intent to compete directly in the fast-growing soft-tissue robotics market. These higher-tech devices carry stronger profit margins and create sticky relationships with hospital systems, offering a durable earnings tailwind beyond basic surgical tools.
Addition by Subtraction: The Orthopedics Strategy
To sustain its growth trajectory and improve margins, management is actively reshaping the corporate structure. A major development is the potential separation or sale of the DePuy Synthes orthopedics business. While originally considered for a spin-off, recent reports suggest the company may pursue a large-scale sale instead.
Divesting the orthopedics unit would be a classic addition-by-subtraction move. Orthopedics is a mature, lower-growth business compared with booming areas like oncology and cardiovascular devices. Shedding this slower unit would improve overall growth rates and profit margins. A sale could also produce a significant lump-sum cash payment, potentially billions, providing capital for acquisitions or share repurchases.
Addressing legal risks is essential to any balanced analysis of Johnson & Johnson. The company still faces litigation over talc products, with a recent $1.5 billion verdict attracting headlines. A commercial lawsuit from Bayer over marketing claims for prostate cancer drugs has also added noise to the news cycle.
Still, the stock's recent rally suggests the market is looking past these headlines. Bulls argue J&J has the financial depth to manage these liabilities without disrupting operations. With more than $20 billion in cash and marketable securities, potential proceeds from an orthopedics sale, and roughly $21 billion in annual free cash flow, the company appears well-equipped to absorb settlements. That financial strength keeps legal battles as balance-sheet items rather than existential threats to the dividend or core business.
Capital Preservation With Upside
Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, tech-forward healthcare company. By separating its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, J&J is streamlining operations to prioritize high-growth opportunities in pharmaceuticals and medical technology.
While the stock is no longer a bargain — trading near all-time highs — it offers a blend of capital preservation and growth that is hard to find elsewhere. The combination of a 64-year dividend growth streak, a low-volatility profile, and a clear path to $100 billion in revenue makes it a compelling option for 2026. For investors fatigued by the unpredictability of the technology sector, Johnson & Johnson demonstrates that, in the current market, boring can be both beautiful and profitable.
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