Three Tech Stocks for Your Portfolio: SanDisk, HPQ Silicon, and Nokia Oyj

Nokia Oyj: Oldie but AI-Goldie

In the wake of the AI data center boom, Wall Street is currently focusing primarily on domestic chip and memory manufacturers. But there are also interesting stocks outside the country's borders, such as Nokia Oyj. Even though you can still find the old Nokia clunkers in cell phone stores, today's Nokia is a pure B2B technology group. These days, the focus is primarily on connecting industry and AI data centers. Nokia is the global market leader in building private networks for Industry 4.0. Whether automated ports, state-of-the-art car factories, or autonomous mines: reliable real-time connectivity runs on Nokia's hardware and software. With platforms like Nokia AVA, the company integrates artificial intelligence directly into the control of mobile networks. This involves building stable networks, optimizing cell tower energy consumption, and automating traffic management. Nokia can build on a massive patent portfolio. This generates long-term licensing fees from giants like Apple, Samsung, and Chinese smartphone manufacturers, ensuring high margins and recurring revenue.

However, there is also a reason why the stock has not been hyped as much as many AI companies by 2025. For one thing, the business is partly cyclical. For example, the major telecommunications companies had temporarily scaled back their investments in 5G expansion and preparations for 6G. This weighed on the Network Infrastructure segment. Other growth areas, on the other hand, are not yet being recognized to the same extent. For instance, massive data streams must also be transported between data centers, where Nokia directly benefits through its optical networking division. In addition, a major wave of network expansion is now rolling out outside the US, for example in India. Nokia benefits not least from geopolitics. Western countries are replacing Chinese providers with Finnish technology—the only competitor is Sweden's Ericsson.

Operationally, Nokia has made a solid start to the new year. Revenue rose by 4% to EUR 4.5 billion, and the gross margin increased to 45.5%. Earnings per share stood at EUR 0.05, compared to just EUR 0.03 in the same quarter of the previous year. The balance sheet is rock-solid: Nokia's net cash position stands at an impressive EUR 3.8 billion. The board now also has the right to repurchase 550 million of its own shares, which corresponds to nearly 10% of all outstanding shares. Nokia shares were essentially rediscovered as a tech/AI play only this year. Since then, the stock has more than doubled. The consensus for 2026 EPS is EUR 0.32. This gives Nokia a P/E ratio of more than 40. However, if the rush for Nokia's AI technology continues, the company could grow into this valuation.

HPQ Silicon: High Tech at Every Level

Battery materials, silica, and hydrogen on-site: Over the past ten years, HPQ Silicon has developed three technologies to make the world a more efficient and better place. Important for investors: Over the next two years, the management team led by CEO Bernard J. Tourillion aims to achieve a commercial breakthrough. And that is precisely why the stock is now attractive.

But let's start with the technologies. In the field of silicon battery materials, HPQ is collaborating with the French company Novacium SAS to develop silicon-based anode materials for lithium-ion batteries. They offer several advantages. These materials (such as the GEN4 cells) achieve a significantly higher energy density than conventional graphite, prevent the typical swelling of silicon, and can be integrated directly into existing battery production lines, which saves costs. But HPQ does not intend to enter the fierce competition in the mass market for electric vehicles. Instead, it is targeting high-priced, high-margin niches such as the defence industry, aviation, and the commercial drone sector. And this is no longer just a pipe dream. The Canadians have already received their first orders from European drone manufacturers. CEO Tourillion expects follow-up orders after the first delivery. In addition, a memorandum of understanding for the Asian market has been signed. The first step toward in-house production has already been taken. HPQ is currently setting up a production line capable of producing 2 tons of anode material per year. Since only about 3 grams of silicon are needed per cell, this allows for the production of significant quantities. The next stage is a 50-ton facility, funded by the Canadian government with CAD 3 million. Upon completion, HPQ would thus be the only non-Chinese manufacturer.

CEO Bernard J. Tourillion presented HPQ Silicon's business model and strategy at the IIF.

https://www.youtube.com/watch?v=V6FO2uPdQLI

Fumed silica, the company's second pillar, could become the most economically profitable and easiest-to-scale business for HPQ Silicon in the long term. Pyrogenic silica is a baseline raw material for cosmetics, pharmaceuticals, coatings, adhesives, and sealants, meaning a billion-dollar market awaits. However, the conventional manufacturing process is extremely energy-intensive and requires many chemical intermediate steps. HPQ's FSR reactor, developed in partnership with PyroGenesis, converts quartz directly into pyrogenic silica in a single, chemical-free plasma step. This drastically reduces production costs (energy) and CO₂ emissions from the production process. Canada currently has no domestic production and imports its needs, estimated at around USD 200 million. A memorandum of understanding (MOU) for a partnership has already been signed with Evonik. The German industrial giant is the global market leader. Additionally, HPQ has already announced another MOU with an end-user.

Green hydrogen is difficult to transport and store. HPQ has developed a system in which hydrogen is generated directly on-site as needed. Recycled aluminum (essentially worthless scrap metal) serves as a non-toxic energy source. The technology works even without clean drinking water; seawater is sufficient. The target market for drones is currently experiencing dynamic growth. HPQ's hydrogen fuel cells can significantly extend flight time. Additionally, the system can provide electricity and heat as a containerized solution for the civilian sector, replacing diesel generators. Potential customers include, for example, mining camps or indigenous villages in the Arctic north of Canada.

HPQ Silicon could thus make a mark in three technology areas simultaneously over the next 18 to 24 months and announce orders. The company currently has a market capitalization of just under CAD 100 million. The potential of each individual product is likely to be significantly greater. Recently, the company has also strengthened its financial position, raising CAD 3 million through a share placement at CAD 0.165 per share. CEO Bernard J. Tourillion emphasized at the IIF (see video above) that all three pillars (batteries, silica, hydrogen) are now simultaneously reaching market maturity. Therefore, a spin-off into independent companies is one way to increase shareholder value.

SanDisk: The Super Bull in the Storage Sector

As recently as early 2025, SanDisk shares traded below USD 37. Today, a single share costs a whopping USD 1,830, and the market capitalization has skyrocketed to around USD 270 billion! There is hardly any other stock that has achieved such a parabolic rise in just under 18 months; the performance stands at more than 4,500%. But can this continue? We explain!

Anyone who thought that graphics chips were the be-all and end-all of the current tech boom did not count on SanDisk. After all, data does not just need to be processed—it needs to be stored in massive quantities at ultra-high speeds. And this is exactly where the storage specialist shines. SanDisk was once known for its SD cards in smartphones, USB drives, and SSDs in PCs. In 2016, the company was acquired by Western Digital. In early 2025, the shares returned to Nasdaq as a spin-off, comprising only the NAND flash memory, SSDs, and enterprise storage solutions business. But that is the future, because data centers need high-performance storage. The major AI hyperscalers are literally scrambling for SanDisk's flash technology, as generative AI models require immense read and write speeds.

At the end of April, SanDisk released its figures for the third fiscal quarter. And they blew away market expectations. Quarterly revenue climbed 251% to USD 5.95 billion. Earnings per share jumped—after a loss in the previous year—to USD 23.41. Management expects the gross margin for the final fourth quarter (of the fiscal year) to be between 65% and 67%. Those are strong numbers! Analysts believe that, as a result of the expansion of AI data centers, SanDisk's boom could last another two to three years. Additionally, there is speculation in the market about a stock split, similar to those announced by Nvidia, Broadcom, or Super Micro Computer in the past. A seemingly low share price could give the stock its next boost.

Wall Street analysts have revised their estimates for the current Q4 upward. An EPS of USD 33.04 is now expected. For the full year, the figure is projected to be between USD 75 and USD 77 per share. This would correspond to a P/E ratio of around 25—a moderate figure for a rapidly growing company. However, SanDisk also faces the risk of profit-taking following this rally. A stock that has delivered several thousand percent over roughly 18 months can quickly correct by 20% or 30%.

With Nokia, investors can bet on a tech veteran whose technology is in demand for communication between AI data centers. But the stock is already very expensive and actually still needs to grow into this valuation. HPQ Silicon aims to commercialize three technologies in the coming 18 to 24 months. Each one alone is likely to be worth more than the company's entire market capitalization. SanDisk is the star of the current AI hype. However, after a performance of several thousand percent since early 2025, significant profit-taking looms here as soon as the market dips.