AI Boom: Unsung Heroes on the Rise

While the hype surrounding artificial intelligence (AI) has made many investors millionaires over the past three years, it is primarily semiconductor companies that are massively benefiting. However, there are also other, less glamorous industries that are crucial for the growth of AI. Memory chips, cooling systems, and wafer technologies are increasingly becoming bottlenecks that determine the pace of expansion for the entire industry. The construction of AI infrastructure is reminiscent of the California Gold Rush, where the real winners were the merchants selling tools to the miners. Specifically, DRAM (Dynamic Random-Access Memory) and NAND flash memory are central elements. According to Citi, the demand for data centers is causing a price high that is expected to last at least until 2026. Micron Technology is reaping significant benefits from this growth as one of the few main players. Traditionally regarded as volatile stocks, this could quickly change due to the growing demand for data. As one of the few U.S. companies with a large market share, Micron could additionally benefit from government tariff measures. Citi raised the price target to $175. SanDisk, following its separation from Western Digital, is now fully specializing in NAND flash memory. Despite a decline in profit margin due to oversupply, Morgan Stanley rates SanDisk as a “Top Pick,” while Citi sees it as a potential beneficiary of a NAND bottleneck.