The Ultimate Bull Run for NVIDIA, Micron, and SanDisk May Be Closer Than Investors Think
A top tech investor just flipped the scariest AI narrative on its head, arguing that the very trend spooking NVIDIA bulls could actually send infrastructure stocks into their biggest payday yet.
Famed technology investor Gavin Baker just made the case that cheaper AI models could be the biggest gift possible to the picks-and-shovels crowd. In a post on X, Baker argued that if market share shifts from frontier labs with 90%-plus inference margins toward cheaper open-source models, “margin dollars would effectively get redistributed from the frontier labs to AI infrastructure providers.”
That would put the benefit squarely in the lane of NVIDIA (NASDAQ: NVDA | NVDA Price Prediction), Micron Technology (NASDAQ: MU), and SanDisk (NASDAQ: SNDK), the companies selling the chips, memory, and storage behind the AI buildout. Hyperscalers like Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) could also benefit if cheaper intelligence lowers the cost of serving customers and expands demand.
NVIDIA is up 13.71% year to date to $212.77. A path to $300 in 2027 hinges on the bull case laid out below.
Wall Street Is Already Bullish, but the Bar Can Go Higher
NVIDIA just posted $81.61 billion in Q1 FY2027 revenue, up 85.2% year over year, with Data Center revenue climbing 92% YoY. Non-GAAP EPS of $1.87 topped estimates, extending the company’s earnings beat streak to five straight quarters. Management guided Q2 revenue to $91.0 billion and disclosed $119 billion in supply commitments, pointing to demand visibility and a supply chain buildout unlike anything in company history.
Baker’s Thesis: Cheap Tokens = More GPUs and Memory
Baker’s key point is that cheaper models drive incremental token demand. As inference costs collapse (the cost of inference has dropped a thousand-fold in three years), volume explodes. That volume runs on NVIDIA silicon paired with High Bandwidth Memory.
Micron’s Cloud Memory segment hit $13.77 billion in Q3 FY2026 revenue with gross margins of 84.6%. SanDisk’s Datacenter segment exploded 645% year over year to $1.47 billion. Hyperscaler capex validates the demand: Amazon is planning roughly $200 billion in 2026 capex, and Microsoft’s Q3 FY26 capex hit $30.88 billion, up 84%.
Nvidia CEO Jensen Huang’s point lands in the same place as Baker’s: “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.”
The Math on $300
At $212.77, NVIDIA trades around 41x trailing earnings. FY2026 non-GAAP EPS came in at $4.77, and current momentum, with revenue growth above 70% for consecutive quarters, gives Wall Street room to keep raising forward estimates. Shares hitting $300 would require roughly 41% upside from here. Historically, NVDA has cleared that hurdle many times in prior cycles.
The Bottom Line on $300
Baker’s framework flips the “cheap AI kills the bull case” fear on its head. If open source wins, infrastructure providers capture the margin. With a 100% beat rate over five quarters, a next earnings date of August 26, 2026, and hyperscaler capex still accelerating, $300 in 2027 remains ambitious, but the blueprint is there.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
