A 4,000% annual return: We also rubbed our eyes at the new trend
SanDisk, Micron and several other companies are leading the top returns in the S&P 500 index, thanks to rising demand from data centers: 'The most supply-constrained layer in terms of building AI infrastructure.'
Assessment
Extreme returns in memory and storage stocks signal a speculative frenzy around AI infrastructure. The supply constraints in this niche hardware layer make it a bottleneck, but such parabolic gains raise questions about sustainability. Watch for whether demand from data centers continues to outpace capacity, or if a correction looms as production scales.