The AI stock market rally has pushed memory and data storage firms sharply higher as investors bet on larger data-centre spending and major artificial intelligence IPOs.
SanDisk shares have gained more than 600% this year. Meanwhile, Micron Technology, Seagate Technology and Western Digital have each risen more than 200%.
By comparison, the S&P 500 has gained 11% so far this year. The gap shows how strongly investors have favoured AI supply-chain stocks over the broader market.
Alphabet Inc. said Monday it plans to raise $80 billion in equity. The company said it will use the money to expand its artificial intelligence infrastructure.
Berkshire Hathaway will invest $10 billion in the Alphabet fundraising plan, according to market reports. The move adds another signal that large investors expect AI spending to keep rising.
Read: Is the U.S. Stock Market Aging? IPO Decline Raises Concerns
AI systems require substantial memory and storage to process data. As a result, demand has tightened supply and helped chipmakers raise prices.
CFRA Research technology analyst Angelo Zino said some parts of the AI supply chain face major bottlenecks. He said those areas may have the greatest pricing upside.
Anthropic also took a step toward a public listing on Monday. OpenAI and SpaceX are expected to draw more investor attention as Wall Street tracks the next wave of AI-related IPOs.
