Outside of electricity and processing power, one of the biggest bottlenecks controlling the pace of the artificial intelligence infrastructure build-out is the amount of memory chips and data storage solutions available.
Demand far exceeds supply right now, and that has allowed both Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) to thrive
Each offers different solutions, but both have been and can continue to be beneficiaries of the AI memory boom. The recent sell-off Before weighing these two stocks against each other, it’s worth mentioning the recent volatility that AI stocks, particularly memory stocks, have experienced. There was no single primary piece of news that weighed on the companies; rather, a collection of news items likely put pressure on Micron and Sandisk.
One broad concern is that higher inflation will persist. That prospect is prompting some investors to rotate out of high-growth stocks ahead of anticipated interest rate hikes. For industry-specific news, SK Hynix, another memory company that has done well this year, started selling off on the Korean Exchange, which may have sparked the fear that has trickled into U.S. markets.