Are NeoClouds the Biggest Buying Opportunity Since Micron?

**Melvin** (0:00)
Think about what Jensen has done here in the last like six months. He has put two billion in CoreWeave, two billion in Nebius, equity in Lambda, end scale, Crusoe.

**LGD Set** (0:10)
What's up, everybody? It's LGD Set here, and welcome to Milk Road AI, the daily AI show that learns more about this stuff every single day, and in hopes I can remember it next time, I try to sound smart at a party. Today is July 14th, 2026, recording on the 13th, NeoClouds. They are on a big dip right now, along with much of the market, but many people are still very bullish on these companies, getting a huge allocation of all that capex that's coming in the next few years, including Melvin, our leading AI analyst here at Milk Road. Every week, we sit down with Melvin to talk through one major part of the industry and the best-looking stocks in that area and even get a little education on how it all works. Today, we are going to talk about Neoclouds, Nebius, CoreWeave and a lot of the other companies in the space, so tune in. Before we start, our analysts, like Melvin, made over 30 moves last month across their portfolios in AI, robotics and crypto. And this is after calling Micron, AMD, Bloom and many other AI winners earlier this year. You can see exactly what he's calling next for just a dollar in Milk Road PRO at the link below. Today's episode is brought to you by BitGet, Stocks 2 with real liquidity, real dividends and Securitize, the regulated rails for tokenization. Melvin, it's Monday. I'm ready for the Alpha, man. Your last couple of videos have been total bangers. I'm learning a lot every time we do this. And today we're going to talk about Neoclouds, which is something where I like, it's one of those things, I can be honest with you, man. I pretend like I know what that is.
And even after you told us to buy the DIP a couple weeks ago, like I told a buddy IRL, I was like, you got to buy the Neocloud DIP. But honestly, I was like, I'm glad he didn't ask me any more questions because I was going to be like, I don't know, you got to listen to Melvin to explain this. And that's what we're going to do today. So I'll let you take it away.

**Melvin** (1:41)
Thanks for having me back on LG. Super excited to be here. I think last couple of videos, we talked about Micron, robotics. So today is all going to be about Neoclouds. And specifically two to three stocks that I'm currently buying. And I think these two are the most interesting setups in the entire AI infrastructure right now. But before I get into those stocks, I want to set the scene with some numbers that just dropped this morning from Morgan Stanley, because they're directly relevant to everything we're going to be talking about LG. So Morgan Stanley just raised its 2027 and 2028 CapEx estimates by 9 and 10 percent, and the new numbers are 1.23 trillion in 2027 and 1.4 trillion in 2028 Those figures now include SpaceX terrestrial compute, CapEx for the first time as Morgan Stanley is now treating SpaceX as a legitimate hyperscaler class spender alongside Google, Amazon, Microsoft, Meta. So to put all this trajectory in context, hyperscalers have essentially spent 261 billion in 2024, and is now projected to spend 1.4 trillion in 2028, which is a 5X increase in just four years.
Now, these numbers doesn't even include the CapEx from major frontier labs like OpenAI and Anthropic, and this is just Google, Amazon, Microsoft, Metas, and SpaceX. There's so many more companies that are spending billions of dollars like Micron, you have SK Hynex, none of those are included in here. These are just the top five hyperscalers.
Now, what does this mean? How can you benefit from all this?
One of the ways in which I think you can benefit is from through Neo Clouds. Now, if you can go to the next slide, is a chart of Neo Clouds.

**LGD Set** (3:52)
Wait, can I stop you, Melvin? Can I just stop you? That CapEx, and we've talked about this many times on the show, what is that being spent on specifically? I know that one of them is Neo Clouds, but is this just more data centers? Like is this just we're spending this to make data centers only? Like is that what it is?

**Melvin** (4:06)
Yeah, more data centers, chips, a lot of it is going to go through Nvidia. We talked about Micron, right? Memory, this is a lot of it is going to go into memory as well as memory prices are essentially doubling every year. And yeah, a lot of these chips, data centers, memory, and a lot of the downstream and upstream companies are going to tremendous, like supply chain companies are going to benefit tremendously from all this CapEx spending.