‘This Time Is Different’: How AI Is Redefining the Memory Market

Memory and storage stocks are the market’s hottest trade, but investors aren’t sweating the companies’ suddenly elevated valuations as the buildout of artificial intelligence transforms their cyclical nature.

Even though Sandisk Corp., Western Digital Corp., Micron Technology Inc. and Seagate Technology Holdings Plc have been the best performing shares in the S&P 500 Index since the end of 2024, investors continue to view them as attractive buys. And while they may look expensive based on their past stock prices, the nature of the AI trade is making those historical comparisons irrelevant.

“The playbook needs to be torn ...