The Sleep Well Portfolio consists of time-tested, market-leading companies. They screen them with a rigorous checklist and regularly track their theses to determine when to buy.

In July 2026, The Sleep Well Portfolio saw more uncertainties and speculations around AI spending and return on investment (ROI). Micron (MU), Nebius (NBIS), and other AI infrastructure names fell as much as 50% from the recent peak. Mr. Market was highly unstable. They, on the other hand, had a quiet month. The portfolio recovery continued, but not much happened. August 2026 was more eventful month to report as the Q2 reports roll in, maybe September 2026 will be more eventful too.

AI’s ROI not clear

There is no doubt AI will revolutionize everything digitally in the next 5 years. Elon Musk goes further, predicting AI will also dominate the physical world by 2036, driving the greatest economic transformation. Combining both means we will enter a ‘quasi-infinite economy’, where digital intelligence with vast numbers of physical robots creates a framework where goods and services become so abundant that money and traditional jobs may become optional by 2036.

If you share Elon’s vision, The Sleep Well Portfolio guess AI’s ROI will be substantial for all.

For now, even as hyperscalers continue to expand backlog (AWS expects to reach $500B by 2027), The Sleep Well Portfolio can’t say ROI is clear.

First, these hyperscalers are also expanding their CAPEX budget at a rapid clip (Amazon increased its capex budget to $220B for 2026). Then, we also saw SpaceX and Meta early in July announce they were renting out excess capacity (on a 90-day basis), and thirdly, Ramp’s latest AI Index shows the median firm spends $11.38 per employee per month on AI, which is ~700x less than the top 1% of firms spending ~$7,500 per employee per month.

So, if there is ROI, AI usage and monetization are only tightly concentrated to a small group of power users doing important work.

For the majority, AI usage and ROI are still unclear, in The Sleep Well Portfolio view.

That said, they remain closely watching Amazon, Microsoft, and the likes as an investment directly in AI. Certainly, the constraints in chips (China) and power and cooling (US) are very interesting to explore. They wish to share some of these names in the future.

Portfolio recovery continues

Despite the volatility and liquidity pull from AI, the portfolio’s recovery has kept the pace from June 2026. It is happening faster than we thought, as it’s been just 6 months since the bottom of the software apocalypse, which was also when they evaluated the AI risk for all holdings . The takeaway is that whenever the worst headlines are on the news, that’s an indication of the bottom. Since then, most of the software holdings have shown no signs of disruption, and shares have rebounded 20-30% (Veeva, Fortinet, CrowdStrike, Kinsale, Cellebrite). Our ecommerce and fintech (Sea Limited, Mercado Libre, Grab) are lagging, but The Sleep Well Portfolio remain very optimistic about their future.

If The Sleep Well Portfolio hadn’t had a large allocation for these names, they would be adding more already. History shows opportunities may come. The last drawdown of this scale lasted a year and a half after the war in Ukraine started. And, learning from the last period, all in all, they made 10 purchases and 1 sell. Almost all have been highly accretive to the portfolio so far. They believe patience will win.

Before they review the portfolio, They have a small change to make. They find the monthly Best Buys, Thesis Tracking, and Portfolio updates counterproductive to long-term investing. They encourage overthinking and tinkering in such a short period that makes very little difference to the business. So going forward, The Sleep Well Portfolio will focus on the quarterly updates (Thesis Tracking), keep the monthly portfolio update brief, and transition to a longer-form quarterly portfolio update. Their primary goal remains building a sleep well portfolio for their daughters, and the frequency of documentation makes it less productive, in their view.

To conclude, according to The Sleep Well Portfolio July 2026 was a non-event month after an incredible resurgence of software in June. Intuitive Surgical reported Q2 ; nothing changed in my view, despite a 10% drop, so the in-depth writeup on why I bought below the company remains relevant.