‘Apple and Microsoft Look Like Value Stocks’: Morningstar on SanDisk’s 2,107% Year

Microsoft (MSFT) and Alphabet (GOOGL) reported earnings, with Azure growing 43% and Google Cloud surging 82%. Alphabet's valuation is cheaper, but Microsoft generated $20B in free cash flow while Alphabet's turned negative. Analysts highlight AI capex ROI as a key risk for both.

Microsoft plans to expand its data center capacity from 12 GW to 38 GW by 2032, aiming to address capacity shortages that have led to lost clients and service restrictions. The expansion, the largest in the company's history, faces political and physical constraints, including grid interconnection delays and community opposition. Microsoft's capital expenditures reached $145 billion in fiscal year 2026, with additional lease commitments totaling $329 billion. The company has also extended the es

SanDisk (SNDK) stock surged 2,440% in 2026, reaching $2,354 before retreating to $1,692. CEO David Goeckeler attributed growth to a focus on NAND flash memory. Q3 revenue rose 372% to $8.97B, with 84.6% gross margins. Long-term contracts with data centers total $93.9B. Insider sales and competition from Chinese manufacturers pose risks. Analysts' price targets range from $1,400 to $2,450.

Microsoft may expand its data-center capacity to 38 gigawatts by 2032, over three times its current 12 gigawatts, with AI-focused infrastructure accounting for about one-third, according to Bloomberg. The company is also considering longer lease periods to spread costs. Microsoft expects capital expenditure to reach $50 billion by Q1 FY2027 and $175 billion for 2026.

Microsoft plans to expand its data center capacity to 38 gigawatts by 2032, up from 12 gigawatts, to meet AI and cloud demand. The company reported Q2 2026 net income of $38.46 billion and revenue of $81.27 billion, with capital expenditure reaching $175 billion. MSFT shares closed at $490.04 on 10 September 2026, down 0.74% on the day.

Microsoft (MSFT) plans to expand its data center capacity to 38 gigawatts by 2032, up from 12 gigawatts, to meet rising AI and cloud service demand. The company is currently valued at $492.44, deemed 15.6% undervalued with a GF Value of $583.36. Microsoft's GF Score is 99/100, reflecting strong financial performance. The expansion aims to address past capacity constraints and capitalize on market growth.