4 Stocks Investors Should Be Watching After the Jobs Report

KEY POINTS

• SanDisk is showing major momentum
  SanDisk surged nearly 12% Friday, making it one of the market's biggest winners despite a broader decline.

• Micron is benefiting from the AI infrastructure boom
  Micron could benefit as AI data centers drive demand for high-performance memory.

• Nvidia is holding up despite higher-rate fears
  Nvidia continues showing strength as investors price in a greater chance of a September Fed rate hike.

• AMD could be the next AI chip winner
  AMD offers another way to participate in the AI-chip boom as semiconductor stocks attract buyers.

1. SanDisk: The breakout nobody expected

SanDisk was one of Friday's biggest winners, surging roughly 12% and becoming the best-performing S&P 500 stock of the session.

That's notable because the broader market was moving in the opposite direction.

The jobs report pushed Treasury yields higher and increased expectations for a potential Fed rate hike. Normally, that's a headwind for high-growth technology stocks.

But investors continued piling into SanDisk.

The move is part of a broader rotation into companies supplying the infrastructure behind artificial intelligence. AI systems require enormous amounts of storage and memory, giving companies like SanDisk exposure to the continued expansion of data centers.

The takeaway: SanDisk's relative strength makes it one of the most interesting AI infrastructure stocks to watch right now.

2. Micron: AI demand is spreading beyond GPUs

Micron jumped roughly 6% Friday, another major move while the broader market was under pressure.

The reason investors are paying attention is simple: AI isn't just a GPU story.

The massive expansion of AI data centers requires huge amounts of high-performance memory. That puts companies such as Micron directly in the path of continued AI infrastructure spending.

Micron's stock has also been volatile, meaning investors are still deciding whether the recent AI enthusiasm represents the beginning of another major move or simply a short-term bounce.

The company's next earnings report could provide an important catalyst.

The takeaway: If AI spending remains strong, Micron could be one of the biggest beneficiaries outside the traditional AI-chip leaders.

3. Nvidia: The AI leader isn't slowing down

Nvidia didn't produce the biggest move Friday, but that's exactly what makes its performance interesting.

While the major indexes declined, Nvidia continued showing relative strength.

Investors are clearly still willing to pay up for the company at the center of the AI infrastructure boom.

The bigger question now is whether Nvidia can continue climbing while interest rates move higher.

That's an important test.

A stronger labor market means the Federal Reserve may have less reason to cut rates. Markets are now pricing in roughly a 60% chance of a September rate hike following the jobs report.

If Nvidia can continue showing strength in that environment, it would be a powerful sign that investors remain confident in the AI growth story.

The takeaway: Nvidia remains the stock to watch for a signal on whether the AI trade can withstand higher interest rates.

4. AMD: The alternative AI chip play

AMD also deserves attention as investors look beyond Nvidia.

The company has become one of the most important competitors in the AI accelerator market, giving investors another way to participate in the growth of AI infrastructure.

The broader semiconductor trade is showing impressive momentum.

The Philadelphia Semiconductor Index jumped about 3% Friday, even as the S&P 500 and Nasdaq finished lower.

That's an important divergence.

It suggests investors aren't necessarily abandoning growth stocks because of higher rates. Instead, money may be rotating toward companies with stronger exposure to AI infrastructure.

AMD is one of the clearest names to watch if that rotation continues.

The takeaway: AMD could benefit if investors continue searching for the next major AI winner beyond Nvidia.

The Bottom Line

Friday's jobs report created a strange setup for investors.

The economy added 162,000 jobs in August, far above expectations, pushing Treasury yields higher and increasing the odds of a September Fed rate hike.

Yet semiconductor and AI-related stocks surged.

That's the signal worth watching.

SanDisk, Micron, Nvidia and AMD are showing that investors remain willing to chase AI exposure even with interest-rate uncertainty hanging over the market.

If that strength continues next week, it could be a sign that the next phase of the AI trade isn't necessarily about finding the biggest AI company.

It may be about finding the companies supplying everything AI needs to keep growing.