If You Missed Palantir in 2023, These 4 Stocks Are Spring-Loaded

BWB - Business With Brian•Oct 11, 2026

Summary

Brian argues that the current market environment has created several 'coiled spring' setups where companies are becoming fundamentally stronger under the surface while their stock prices consolidate or pull back. Brian uses the historical example of Palantir to show how a shift into profitability can lead to explosive gains, emphasizing that being in the market is more important than timing the perfect entry.

Brian breaks down four specific companies where this dynamic is currently playing out:

Amazon (AMZN): Brian argues that the cloud business, AWS, is growing rapidly but the stock is weighed down by massive $220 billion capital expenditures in data centers. Brian states that once these facilities go online and free cash flow improves, the stock is likely to surge. Brian notes that despite a P/E of 31 (adjusted for Anthropic gains), the PEG ratio indicates a fair price for growth.

Broadcom (AVGO): Brian states that Broadcom acts as a 'tailor' for custom AI chips for giants like Google and Meta. Brian argues that with a PEG ratio of 0.5, the market is discounting its 220% AI revenue growth. Brian highlights the risk of customer concentration but believes the massive backlog of un-cancelable orders makes it a compelling opportunity.

SanDisk (WDC): Brian explains that while Micron handles short-term memory, SanDisk (Western Digital) provides the 'pantry' or long-term storage needed for AI. Brian argues that the stock is extremely cheap at 7x forward earnings. Brian acknowledges the cyclical nature of memory but suggests that multi-year data center contracts might stabilize the business more than in previous cycles.

Applied Digital (APLD): Brian states that this is a speculative long-term play on AI data center infrastructure. Brian argues that the company is currently hampered by high interest costs on its debt, but as its five contracted sites go live, rental income should eventually double interest expenses. Brian believes the stock could potentially double in value over the next 18 months if it is re-valued like other major data center landlords.

Mentioned Stocks

AVGO

Sentiment: BUYAction: RECOMMENDED

Reasoning: Brian states that Broadcom's valuation is very attractive with a PEG ratio of 0.5. Brian argues that while customer concentration is a risk, the 220% growth in AI chip revenue and a massive backlog of $179 billion in orders suggest significant upside. Brian notes that his system suggests 'buying a little' as the price has fallen below key moving averages.

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AMZN

Sentiment: BUYAction: RECOMMENDED

Reasoning: Brian argues that Amazon's cloud business (AWS) is seeing re-accelerating growth and that the current pressure on the stock is temporary due to high capital expenditures. Brian states that he is not personally buying more because he is already 'full' from shares earned during his time working there, but he views the company as a coiled spring ready to release once data centers go online.

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APLD

Sentiment: BUYAction: BOUGHT

Reasoning: Brian states that Applied Digital is a speculative play where the spring is 'extremely tightly coiled.' Brian argues that the stock is undervalued compared to other data center REITs when measuring by contracted rental income. Brian states that he uses a continuous savings plan for this stock, expecting it to potentially double in value over the next 18 months as rental income begins to dwarf interest payments.

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WDC

Sentiment: BUYAction: BOUGHT

Reasoning: Brian argues that SanDisk (Western Digital) is undervalued at only 7x future earnings while revenue is expected to double. Brian states that he is using the cost-average effect to buy the stock because of its high volatility. Brian believes the shift toward long-term data center contracts may reduce the historical 'boom and bust' cyclicality of the memory market.

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