Quantitative trading giant Susquehanna analyst Mehdi Hosseini recently stated that storage has become the “king” of the semiconductor industry and believes “the dominance of storage will continue.” In a report sent to customers on Tuesday, he said that investment in artificial intelligence data centers is expected to double the chip industry's revenue to reach $1.5 trillion this year, and memory chips have been the “main driver” of this growth. He quoted the semiconductor industry association's global shipment volume and average sales price data for July. Hosseini notes that memory chips currently account for 50% to 55% of total semiconductor revenue, adding that historically, storage has accounted for about 20% to 30% of the total revenue of the entire industry. In terms of benefiting individual stocks, he mentioned that the accelerated rise in demand and prices for memory chips has made Micron one of the best-performing stocks in the S&P 500 index this year. The stock has risen 217% so far this year. SanDisk, which focuses on NAND flash memory, is also benefiting from AI-driven storage demand, and its stock price has risen 531% so far this year. Hosseini gave both stocks positive ratings.

Quantitative trading giant Susquehanna analyst Mehdi Hosseini recently stated that storage has become the “king” of the semiconductor industry and believes “the dominance of storage will continue.” In a report sent to customers on Tuesday, he said that investment in artificial intelligence data centers is expected to double the chip industry's revenue to reach $1.5 trillion this year, and memory chips have been the “main driver” of this growth. He quoted the semiconductor industry association's global shipment volume and average sales price data for July. Hosseini notes that memory chips currently account for 50% to 55% of total semiconductor revenue, adding that historically, storage has accounted for about 20% to 30% of the total revenue of the entire industry. In terms of benefiting individual stocks, he mentioned that the accelerated rise in demand and prices for memory chips has made Micron one of the best-performing stocks in the S&P 500 index this year. The stock has risen 217% so far this year. SanDisk, which focuses on NAND flash memory, is also benefiting from AI-driven storage demand, and its stock price has risen 531% so far this year. Hosseini gave both stocks positive ratings.