Elon Musk's $30B AI Bet: 4 Stocks That Could Cash In

Many of the hottest AI chip stocks have pulled back from their summer highs. And while investors were catching their breath, Elon Musk quietly lined up $30 billion to spend on AI. Now, when someone spends that kind of money, somebody else gets paid. And luckily for you, I did a little leg work to see which companies could stand to benefit. And then I ran that short list through a 115 factor fundamental, technical, and AI review. And today I'm going to share the four overall strongest stock picks with you. I'm saving the best for last. It's a company that Elon Musk personally thanked on Tesla's last earnings call. So be sure to stick around to the end of the video to get that one on your watch list. Oh, and I should tell you who I am. My name is Jacob Wade and I help highinccome earners build wealth and retire early. And on this channel, we cut through all the noise in the market and focus on where the real opportunities are. All right, first let's break down this $30 billion deal. On September 29th, Tesla signed $30 billion in new credit agreements with City and Wells Fargo. It hasn't borrowed a dime of it yet. So why line it up now? Well, that's because Tesla's spending is about to gain significant momentum. The company expects to spend more than $25 billion on capital projects this year alone and first half spending more than doubled from a year ago. Now, where is that money headed? to AI data centers, Optimus robots, the cyber cab robo taxi, and the biggest swing of all, terra fab. That's a giant chip factory Tesla and SpaceX are planning in Texas. And the first phase alone is priced at nearly $17 billion. The plan is to design, build, package, and test chips, memory included, all under one roof. And honestly, this is just classic Musk, a maverick CEO who takes big swings and often he succeeds. But here's the twist. Tesla itself only earns a C rating from our Zen ratings, which amounts to a hold recommendation. This is after a 115 fact review that I referenced earlier. Our system analyzes each stock on those 115 factors to pinpoint tickers with the highest likelihood to outperform the market. and it has delivered on its objective in the past with our highest tier of A-rated stocks historically beating the S&P 500 by nearly 3 to one. And speaking of, if you want a free report featuring three A-rated stocks to consider adding to your portfolio right now, then visit wall streetzen.com/double or click the link in the description below. Or if you got your phone handy, just scan the QR code on the screen right here to get it for free. All right, back to Tesla, which again earns a C rating. Unfortunately, C or hold rated stocks have not really performed as strongly as the A-rated tier. They've generally underperformed the market by about 50%. So, that's why we often say that a C-rated stock means see you later. Okay, I know that's kind of cheesy, but instead of chasing Tesla, I followed the money to companies that Tesla actually has to pay, and it leads to two different bottlenecks: memory and packaging. Musk himself called the memory price spike the biggest price jump in anything he'd ever seen. And I've watched this pattern play out several times over the years when a Wall Street giant is part of a mega trend. The increased spending often flows down the supply chain. So let's start with a company that actually helps assemble AI chips. All right, my first pick is going to be CQ and Sofa, ticker symbol KL IC. Now, this is not a household name, but if you've used a phone or a car or a computer, you've almost certainly used a chip that passed through its machines. Now, Culic makes the equipment that bonds and packages chips together. That's a step where a finished piece of silicone gets connected to everything else or stacked with other chips. In the AI boom, it's one of the biggest industry bottlenecks right now. And that's where Musk comes in. Terrafab is designed to handle its own advanced packaging, and industry researchers point to packaging as the most realistic first step for Tesla's chip ambitions. To be clear, Culich hasn't announced a Tesla contract, but anyone building chip packaging at this scale needs the kind of tools that Culich sells. Now, let's talk about why this company is actually quality. Demand is clearly accelerating and last quarter revenues rose more than 35% from the quarter before and earnings jumped more than 60%. And here's the opportunity. Shares now trade about 30% off their all-time highs even as the outlook continues to improve. Analysts expect earnings to nearly triple over the next year. And the value is there too. Culix's PEG ratio, which is the PE ratio adjusted for growth, sits around 0.8. The average stock has a peg closer to 1.5. That means shares could rally about 80% and still be cheaper than the average stock on a growth adjusted basis. So to me, that makes this pullback a buy the dip opportunity. Now, here's what I really like. Only one Wall Street analyst covers Culic right now, which makes it a true hidden gem. And the one analyst that happens to be on it is a heck of a stock picker. Charles Shei at needm ranks in the top 1% of all analysts that we track for his stock picking track record. He has a buy recommendation and his price target points to an ample upside in the coming year. However, this coverage gap could result in even higher targets once Wall Street actually wakes up to this stock. And our Zen ratings tell an even more bullish story here. After a full review of 115 fundamental technical and AI factors, CQL earns an elite A rating, which amounts to a strong buy recommendation. And remember, just like in school, A grades are nicely rewarded. Right now, CQIC ranks better than 98% of all the stocks that we track, and it's the number one ranked stock in the semiconductor equipment industry. Now, nestled below each 10 rating, you'll find seven underlying component grades that show where a stock's strengths and weaknesses may lie. Here's the roster for Culich. Sentiment is in the top 8%. So, the smart money is already on board here. Financials are in the top 16% based on 26 different measures. So, it's a well-run company. Growth is in the top 2% which points to more earnings beats ahead. Now, the one risk is that chip stocks move in cycles and when sentiment turns bearish, smaller names underperform significantly. So, here's my take. Hulich is a picks and shovels play in one of AI's biggest pressure points and is still flying under Wall Street's radar. That's a combination that I would like on my side. Now, if you're getting value out of this video, then go ahead and hit the subscribe button below if you're not already subscribed to this channel and make sure to hit that notification bell as well. We publish data driven stock analysis like this every single week and subscribers are the first to see it. Now, the market moves fast and the stocks that matter today aren't the ones that mattered six months ago. So, make sure to turn on those notifications. All right, pick number two is SanDisk, ticker symbol SNDK, and it sits right at the center of the memory story that Musk keeps talking about. In August, futurist Peter Dandis posted that memory, not compute, is what's holding back the AI era. Musk replied with three simple words. Few realize this. And then SanDisk shares jumped 8% the next trading day. Now, AI data centers need massive amounts of fast flash storage to feed their processors, and SanDisk is one of the world's biggest flash manufacturers. Every dollar that Musk and tech giants pour into the AI computing translates into higher storage demand. Now, let's talk about the actual specific things that earned SanDisk a place on this list. First, the most recent numbers show that revenue rose more than 50% from the quarter before and earnings climbed more than 90%. It's clear that SanDisk benefits from pricing power amid steep demand in this market. And yet, as of the week that I'm recording this, shares are actually trading nearly 25% off their all-time high. While the outlook keeps improving, and analysts expect revenue to more than double over the next year, and signs point to value. SanDisk's PEG ratio is under 0.5 compared to about 1.5 for the average stock. So in other words, shares could triple and still be cheaper than the average stock on a growth adjusted basis. And Wall Street is pounding the table with 14 buy and strong buy recommendations and no sell ratings. The most bullish here is CJ Muse at Caner Fitzgerald who ranks in the top 1% of all analysts that we track. His strong buy price target points to more than 60% upside in the year ahead. And when an analyst who outrates 99% of his peers is that bullish on a stock, it's definitely worth paying attention to. Now, Sandisk earns another Elite A rating from our Zen ratings. It ranks better than 99% of all the stocks that we track and it's the number one ranked stock in the computer hardware industry. And if we look at the component grades here, momentum is in the top 8%. So, the price trend is already working in its favor. And value is in the top 9% based on 21 different value measures. Growth is in the top 5% and financials, it's in the top 1% of all stocks that we track. Those are the two most important grades really for predicting earnings beats and SanDisk ras higher on both of those. Now, yes, investors have been hot and cold on AI stocks. So, definitely expect some bumps along the way, but the demand behind SanDisk's numbers isn't going anywhere. A top 1% zen rating, explosive growth, and a direct line to the very bottleneck that Musk flagged. If memory really is the limit of AI, then SanDisk sits right where the money has to flow. Now, so far we've covered packaging and storage. The last two picks make the memory inside the AI chips. One reportedly supplies Tesla's own AI chips, and the other is a company that Musk personally thanked, and it's my favorite of the four. So, don't go anywhere. Our pick number three here is SKH, ticker symbol SKHY. It's one of the biggest memory chip makers on the planet. Now, until recently, most US investors couldn't easily gain exposure to the chipmaker, which changed in July when it listed on the NASDAQ in a record- setting 26.5 billion offering. And the Musk connection is direct. According to Korean media reports, SKHEX supplies the memory in Tesla's AI5 chip, the brain behind Tesla's self-driving and robotics plan. As Tesla ramps up the AI5, Skhinx sells more memory. Now, let me show you what I actually like about this stock. First up, its topline growth is enviable. In the first quarter of this year alone, SKHEX booked about $ 35 billion in revenue. That's more than half of what it booked in all of 2025. Now, for the opportunity moving forward, memory factors take years to build, and the industry is running out of room to make more. So, SKH has been signing long-term deals that lock in both volume and pricing. Basically, in addition to rigging a price hike, it's locking in the good times. And Wall Street is all in on this stock. Every analyst covering SKH Heinix recommends buying the tech stock. There are nine buy and strong buy recommendations and not a single hold recommendation. The most bullish is Kevin Cassidy at Rosenblat, a top 1% analyst whose strong buy price target points to more than 70% upside in the year ahead. And our Zen ratings agree with Wall Street. SKH Highex earns an elite A rating which amounts to a strong buy recommendation. It ranks in the top 2% of all stocks that we track and is the number one ranked stock in the semiconductor industry which itself earns an A. Now the component grades are similarly strong here. Sentiment is in the top 20%. The smart money is already on board here. Artificial intelligence is in the top 15%. Now to be clear that's not about how much AI the company uses. It's our proprietary AI model scanning market data for patterns that have historically pointed to share price outperformance. Now, the financials are in the top 5% based on 26 different measures. Again, another well-run company here. And value, that's in the top 2% across 21 value measures. That's the best value score of any stock in this entire video. But remember, memory prices can swing quickly and that can move the whole group. But with long-term contracts in hand, SKH Highix is better protected than it's been in past cycles. So SK Hinx offers a reported direct line into Tesla's AI chip, and it still trades at an attractive valuation. Plenty of US investors are yet to gain exposure, and that's the opportunity. Now, before we get into the last stock here, one quick thing. If you want to stay one step ahead of this market, then consider joining our editor-inchief, Steve Wrightmeister, live every single Monday. That's when he shares his updated market outlook and trading plan to outperform. It's also when he shares his trade of the week based on the proven Zen ratings quant and his greater than 40 years of investing experience. It's a free event but you do need to register it to join. So just go to wall streetzen.com/live or you can click the link in the description below or if you got your phone handy just scan the QR code on the screen. You can even pause the video real quick, scan this, sign up. You can just pause the video, scan this, and sign up for free. And listen, even if you can't get to the live event itself, you could still sign up and get a replay link after the fact to watch on your own time. And now for the stock that I've been teasing, Micron Technology, ticker symbol MU. Now, on Tesla's July earnings call, Musk singled out one supplier by name. He thanked Micron from making room for Tesla in the years to come. Quote unquote, saying Micron reserved a significant memory supply for Tesla on reasonable terms in a market that he called pretty insane. Now, when memory is the scarcest thing in AI, being the supplier that Musk publicly thanks says a lot. Now, Micron is a hot stock, but that's also for good reason. It just reported earnings and the results were stellar. Revenue for the quarter came in at nearly five times higher than a year ago. and management guided next quarter well above what Wall Street expected. CEO Sanjay Marotra put it simply, "We expect an even stronger fiscal 2027." And Musk's comment wasn't a one-off. Micron has signed 26 multi-year contracts covering more than 35% of its revenue through 2030. It has also already sold most of its 2027 supply of high bandwidth memory, the specialized memory used for AI chips at significantly higher prices. The topline visibility is almost unheard of in the memory business. Even so, shares trade about 15% off their all-time high, and the value is getting difficult to ignore here. Now, Micron has a pay ratio of around 0.4 compared to about 1.5 for the average stock. That means again shares could triple and still be cheaper than a regular stock on a growth adjusted basis. And again, Wall Street is pounding the table with 23 buy and strong buy recommendations. And the most bullish is Gil Laura of DA Davidson, a top 10% analyst whose price target shows more than 95% upside in the year ahead. And after a beat like this, I think more upgrades are coming. Frankly, I think that the upside may actually be conservative here. Now, our Zen ratings make the case even stronger. As you probably expected, Micron earns an elite A rating and ranks in the top 2% of all stocks that we track owing to their truly outstanding fundamentals. If we look at the component grades themselves, value for Micron is in the top 6% based on 21 value measures. So again, from every angle, it's still a value stock somehow. Momentum is in the top 6% meaning the price trend is firmly pointed up and growth is in the top 3%. Financials is in the top 2% again those are the two most important grades for predicting earnings beats ahead which I expect. Now, let's be honest. Memory has a long history of boom and bust cycles, and that can make for a very bumpy ride here. But this time, Micron has contracts running all the way through 2030, which makes this cycle look very, very different from the past. So, if you combine record results, long-term contracts, and a public thank you from the man writing the $30 billion checks, that's why Micron is my top pick in this video. So, let's bring all of this home. Tesla's $30 billion isn't just a Tesla story. It's a signal of where AI money is headed into memory and packaging. The parts of the supply chain that just can't keep up right now. And while Tesla itself is only a hold recommendation, the smarter play is actually owning the A-rated companies that get paid no matter how Musk's bet turns out. And of course, I want to remind you that the Zen ratings are updated daily, so you can check them out before any buy, hold, or sell decision. So, just bookmark your favorite stocks on wall streetzen.com. And if you want more AI stocks to add to your watch list, check out the video that's popping up on your screen right now.