The post Memory supercycle talk grows as shortage boosts stock valuations appeared on BitcoinEthereumNews.com.

The memory trade is pulling in capital fast as chip shortages collide with nonstop AI demand. Storage and chip stocks are climbing hard while investors look past fading megacap rallies and hunt for the next place where cash flow still looks tight. This corner of tech used to bore investors. Storage was slow, dull, and ignored. That changed as AI spending surged. The global AI infrastructure push is now expected to pass $500bn this year. While megacap stocks stalled, storage-linked names ripped higher, turning an overlooked market into one of the loudest trades on the board. Chip shortages push prices and stocks higher SanDisk shares have nearly doubled since January and climbed almost 1,100 per cent since August last year. Micron and Western Digital tripled in that same window. SK Hynix did the same. The rally delivered billions in gains to hedge funds that moved early, including DE Shaw and Arrowstreet Capital. Arun Sai of Pictet Asset Management called the run extreme, saying, “By any measure, that’s an eye-watering few months.” He added that the AI story now centers on memory as the main bottleneck in long-term capital spending. The rally picked up again after Nvidia chief executive Jensen Huang said “holding the working memory of the world’s AIs” could soon become “the largest storage market in the world.” His comments pushed more money into the sector as traders reassessed what limits AI growth. Micron, SK Hynix, and Samsung dominate the supply of fast solid-state chips that feed Nvidia processors. These chips keep large AI systems running, including models behind ChatGPT. As AI tools grew more advanced, data usage exploded. That surge lifted demand for flash products sold by SanDisk and similar firms. Because this type of memory costs more, demand spilled into older systems too. Western Digital and Seagate…

---

Filed under: News - @ January 25, 2026 5:24 pm