Three Stocks for a Speculative Portfolio: SanDisk, MustGrow Biologics and Super Micro Computer

SanDisk: Consolidation First – Then What?

Thanks to SanDisk's spectacular rise through June this year, some investors have made a fortune. But that need not be the end of the story for this AI high-flyer, if analysts are to be believed. After all, the storage-solutions specialist is unlikely to have reached the end of its spectacular growth just yet. Its second-quarter figures were already impressive. With revenue of USD 8.97 billion, the company significantly exceeded the market consensus. The same was true of earnings per share, which came in at USD 39.25, around 20% above expectations. Nevertheless, profit-taking initially set in. Apparently, the so-called "whisper estimates" had been even higher.

SanDisk's share price is currently trading around a quarter below its all-time high. Its market capitalization stands at approximately USD 225 billion. Analysts expect earnings per share of between USD 73.70 and USD 77.80 this year. Next year, that figure is expected to rise to more than USD 200 per share. That would put the P/E ratio below 10. This sounds remarkably cheap, especially given analysts' expectations for substantial revenue growth. Some analysts have set price targets above USD 3,000.

However, an investment in SanDisk is not without its risks. The share is highly volatile, and external market shocks, such as the current global rise in bond yields, often hit high-growth stocks the hardest. Deutsche Bank has recently taken the lead here, speculating that the Federal Reserve could raise interest rates twice before the end of this year. This would also represent a significant external headwind for the much-hyped semiconductor stocks. For SanDisk, only the most hardened traders are willing to take the gamble. If you want to sleep soundly at night, steer clear!

MustGrow Biologics: Sales Are On The Rise

The summer of 2026 has once again demonstrated this clearly. Extreme heatwaves, floods and droughts are putting increasing pressure on both nature and people. Climate change appears to be steadily making its presence felt. Agriculture in Europe, in particular, has been severely affected by these conditions. The Baden Farmers' Association reports that up to one-third of farms in the southern Baden Rhine Valley could face total crop failures for maize and soybeans. Another third are likely to face massive yield losses. Similar alarming reports are coming from farmers' associations in other regions.

However, the issue is more complex than that. There are also significant challenges on a global scale. And even though the global birth rate is now declining, the world's population will continue to grow for some time. Demand for food is increasing. At the same time, soil erosion, increasing urbanization, overexploitation and desert expansion are putting additional pressure on agriculture. As a result, intensive research is underway to find ways of overcoming these obstacles. It is becoming increasingly important to reduce reliance on chemical solutions, as fungicides, insecticides and herbicides can also have harmful effects on people and the environment.

MustGrow Biologics has taken on the latter issue. The company has developed products designed both to protect crops and improve soil quality. The mustard plant's natural biological defence mechanism is at the heart of the technology. Researchers have succeeded in making the active ingredients found in mustard seeds usable in liquid form. Its proprietary liquid formulation, TerraMG™, can be easily applied via existing standard irrigation, injection and spray systems. The technology offers a key advantage: while conventional biological approaches are often considered less effective, MustGrow's products have produced effects in tests and field trials comparable to those achieved with conventional chemical treatments.

MustGrow Biologics has secured an exclusive licence and collaboration agreement with Bayer AG for the commercialization of its pre-registered biocontrol product TerraMG™ in Europe, the Middle East and Africa (EMEA). In addition to licence royalties, this agreement includes upfront fees and payments tied to the achievement of specific milestones. The company announced in August that it has received its first milestone payment from Bayer as compensation for successful product development.

Overall, demand is rising significantly, as the Canadian company has reported. By mid-August, year-to-date sales of its flagship biofertility product, TerraSante™, had risen to CAD 0.9 million, representing a 46% increase. With cash and equivalents of CAD 4.4 million, the company is well-placed to further drive market penetration. The current short-term bottleneck lies with their contract manufacturers, who are currently ramping up production. According to CEO Corey Giasson, however, the company is on track to better meet the rising demand in the second half of the year. MustGrow Biologics' share price rose sharply in August following positive news of their first licensing milestone payment from Bayer AG, though there has recently been some profit-taking. However, with a market capitalization of around EUR 15 million, there is certainly room for growth.

Super Micro Computer: When Will the Pain End?

Super Micro Computer's shares were among the first to benefit from the boom in AI data centres. In early 2024, the share price soared from around USD 30 to over USD 120 within a matter of weeks. However, as is often the case with many Nasdaq stocks, the rapid price gains were sold off.

Yet the company is fundamentally set to profit from the hype surrounding artificial intelligence. As a key player in IT and data centre infrastructure, the company develops and builds high-performance servers, storage systems and modular system architectures. It integrates high-performance chips from Nvidia, AMD, Intel and others into ready-to-use server racks for hyperscalers and large corporations. Thanks to a modular design approach, Super Micro can incorporate new generations of chips into finished server designs extremely quickly.

Yet despite the hype, there is a major problem. The margins are not right. While the company's turnover rose significantly, by 123% to USD 12.68 billion in Q2 2026 alone, other key figures leave much to be desired. Operating cash flow was negative at USD -24 million. The gross margin fell from 11.8% to just over 6%. This is attributed to high discounts and intense price competition in the market.

Investors who have adopted a "buy and hold" strategy with this share have, in principle, earned hardly anything since the hype began. Management's task is to get the margin trend under control. Once that happens, the share price could quickly rebound. But be warned: Super Micro Computer shares are extremely volatile. Investors wishing to get involved here are taking a gamble.

Investors backing SanDisk are banking on analyst optimism. In terms of valuation, however, the share is attractive. Yet, as with Super Micro Computer, interest rate cuts could trigger heavy selling here. With MustGrow Biologics, investors are speculating that management will be able to meet strong demand in the coming quarters while keeping a close eye on margins.