The AI boom has made Nvidia the world’s most valuable company, with a market cap exceeding $5 trillion. Google, Microsoft, and ChatGPT have all seen earnings boosted by this trend. Memory and storage companies are also benefiting from the AI frenzy due to high demand for chips and servers.

AI data centers rely on GPUs from Nvidia and AMD, as well as memory and storage chips. This increased demand has caused a global shortage, driving up stock prices for companies like Sandisk, which has seen a 1,833% increase in its stock price.

The memory and storage shortage was years in the making, exacerbated by the post-COVID surge in demand. Companies like Western Digital and Micron experienced fluctuating revenues, with significant growth in 2025 due to the AI boom.

Micron is focusing on the enterprise market and winding down its consumer brand, Crucial, to capitalize on the AI boom. Demand for memory and storage chips has outstripped supply, leading to higher prices and investor interest in chip companies.

Stock prices for chip companies like Micron and Western Digital have surged, with SK Hynix and Kioxia also seeing significant growth. The memory and storage industry is cyclical, with AI demand currently driving up prices.

As supply chains stabilize and more manufacturing facilities come online, prices are expected to decrease. However, the rapid growth of AI demand may keep prices high for the foreseeable future, leading to continued high prices for memory and storage chips.

Read more at Yahoo Finance: Memory company stocks are seeing 1,000% gains from the AI boom