Memory and Storage Stocks Surge as AI Demand Outstrips Supply

Once considered a dull corner of the tech market, memory and storage stocks have become one of the most explosive trades as artificial intelligence spending reshapes the sector. The global AI infrastructure push is now projected to exceed $500 billion this year, with storage emerging as the critical bottleneck.

SanDisk shares have nearly doubled since January and soared almost 1,100% since August 2023. Micron, Western Digital, and SK Hynix have all tripled in value over the same period. Hedge funds including DE Shaw and Arrowstreet Capital have reaped billions from the rally.

The momentum accelerated after Nvidia CEO Jensen Huang declared that AI memory could become "the largest storage market in the world." His comments refocused attention on the fast solid-state chips from Micron, SK Hynix, and Samsung that power Nvidia processors and sustain advanced AI systems like those behind ChatGPT.

"By any measure, that's an eye-watering few months," said Arun Sai of Pictet Asset Management, describing the extreme run-up. As AI models grow more sophisticated and data consumption explodes, the memory sector has transformed from afterthought to center stage in the tech investment landscape.