Nvidia and 3 AI Infrastructure Stocks Backed by Big R and D Spending

Big, highly efficient companies are back in the spotlight after fresh research on how a small group of giants drives most productivity gains and pours more into R&D than many governments. That mix of scale, cash generation and policy attention is reshaping where capital flows. This article unpacks the story and then walks through 3 large-cap stocks from our Global Productivity Leaders screener that appear particularly exposed to this evolving landscape.

The three stocks below are just a sample from this theme, while the full screen surfaced 9 more large-cap productivity leaders with similarly rich stories that are not covered here. To see the wider opportunity set, head straight to the Global Large-Cap Productivity Leaders screener to identify, compare and analyze candidates that best fit your own high-conviction ideas.

Kioxia Holdings (TSE:285A)

Overview: Kioxia Holdings is a Japan based producer of flash memory and SSDs that power data centers, smart devices and enterprise storage.

Operations: Kioxia Holdings generates about ¥3,761.9b in revenue from its Memory Business segment, centered on flash memory and SSD products.

Market Cap: ¥31,730.0b

Kioxia Holdings fits this productivity theme as a large scale, R&D heavy memory supplier that sits directly behind AI and cloud storage demand. This is where the current story gets interesting.

"The move to have more than 60% of Kioxia Holdings revenue tied to data center chips by fiscal 2028 opens room for a higher margin mix if AI storage customers value performance and reliability over unit cost, which could influence operating margins as the shift progresses."

What happens if a single assumption about future AI storage buying patterns quietly tilts that margin equation in either direction?

That margin swing is exactly what sits at the heart of the full narrative for Kioxia Holdings, where the full story of AI demand, capital intensity, and downside protection comes into focus.

Sandisk (SNDK)

Overview: Sandisk develops NAND based storage solutions that power data centers, AI workloads and everyday devices, helping turn raw compute into usable productivity.

Operations: Sandisk generates about US$20.2b in revenue from developing, manufacturing, marketing and selling NAND based data storage devices and solutions worldwide.

Market Cap: US$251.8b

Sandisk fits neatly into the Global Large Cap Productivity Leaders theme because its flash technology underpins how efficiently data heavy workloads actually run, across hyperscale clouds, AI clusters and the consumer devices that feed those systems.

"Accelerating AI infrastructure and data center build-outs are driving rapid enterprise SSD adoption. This is positioning Sandisk to outgrow a data center market where exabyte demand is expected to rise from the high 300s in 2026."

The real swing factor is how one evolving supply and pricing assumption ripples through future margins, cash generation and investors’ patience.

That hinge point on supply, pricing and patience is exactly what the full narrative for Sandisk unpacks. It reveals where Sandisk’s AI demand story could accelerate or quietly stall next.

Airbus (ENXTPA:AIR)

Overview: Airbus designs, builds and supports commercial jets, helicopters, military aircraft and space systems for airlines, governments and telecom customers worldwide.

Operations: Airbus generates about €55.6b from its Airbus segment, €8.96b from Helicopters and €13.9b from Defence and Space, before €1.51b eliminations.

Market Cap: €149.8b

Airbus appears in this Global Large-Cap Productivity Leaders screen because its scale, R&D spend and manufacturing discipline help set a high productivity benchmark for global aviation and space.

"Supply chain bottlenecks could impede production ramp-ups."

What happens to margins and free cash flow if one pressure point inside that large backlog suddenly dictates the real pace of output?

If that production bottleneck question is front of mind, the full narrative for Airbus shows how Airbus capacity, pricing power and capital plans could be quietly decoupling from near term worries.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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