America’s stock market is surging, but it’s still all about AI

AI-driven demand is fueling a stock market rally, with companies tied to the sector leading gains. Anthropic filed for an IPO, and OpenAI is expected to follow, while Elon Musk’s SpaceX prepares to begin trading after its May IPO filing. The surge extends beyond AI firms, with memory chip and data storage companies like SanDisk, Micron, Seagate, and Western Digital seeing explosive growth. SanDisk’s shares have risen over 600% year-to-date, while Micron, Seagate, and Western Digital have all surged more than 200%, outperforming the S&P 500’s 11% gain. Alphabet announced plans to raise $80 billion in equity, including $10 billion from Berkshire Hathaway, to expand AI infrastructure. This move highlights the strong demand for data centers, which require massive memory and storage capacity. Analysts note supply shortages are driving up prices, benefiting companies like SanDisk and Micron. SanDisk, which spun off from Western Digital in February 2025, has seen its shares climb over 4,500% in the past year, with Citi raising its price target to $2,025 after the stock hit $1,761. Investor interest in memory stocks is intense, with Micron being the second-most traded stock on Interactive Brokers after Nvidia. A new ETF focused on memory stocks, the DRAM fund, rose 61% in May. Analysts attribute the rally to long-term revenue growth for companies supplying AI infrastructure, with SanDisk benefiting from prepayment deals and financial guarantees. The AI boom is reshaping the stock market, with supply chain companies seeing unprecedented demand. While Big Tech firms lead the charge, smaller players in memory and storage are also reaping rewards. The trend underscores how AI’s infrastructure needs are driving market shifts, creating opportunities across multiple sectors.