Memory Chip Boom: Riding the AI Wave

Retail investors are increasingly buying shares from memory and data storage companies like SanDisk, Western Digital, and Seagate due to rising AI infrastructure needs, causing a global memory chip shortage. This surge reflects expectations for continued demand and rising prices in the sector.

Retail investors have significantly increased their purchases of shares in memory and data storage companies amid an ongoing shortage driven by skyrocketing demand for AI infrastructure. Chipmakers, such as SanDisk, Western Digital, and Seagate, are experiencing massive inflows and soaring shares, reflecting investor confidence in sustained demand.

As memory chips become scarce, companies across the AI and consumer electronics sectors are vying for limited supplies, which is expected to prolong backlogs. Samsung's TM Roh and other industry leaders have highlighted the severity of the situation, predicting continued constraints as demand escalates.

Data from Vanda Research reveals a standout performance for SanDisk, with a record $7.1 million in retail inflows in just one day, while Western Digital and Seagate also see substantial investor interest. Analysts foresee a multi-year growth trajectory for the memory chip sector as AI propels demand further.

(With inputs from agencies.)