The term “paradigm shift” is often casually applied to what may simply be rapid rotations between fashionable assets, the latest example being the AI-driven semiconductor boom.
Hyperscalers like Amazon ( AMZ ) and Google ( GOOG ) are spending big on data centers that contain thousands of AI accelerators. These systems require massive amounts of high-bandwidth memory for processing and NAND flash for storage, tightening supply and driving up chip prices.
Micron Technology ( MU ) produces DRAM, NAND and other memory products, while Sandisk ( SNDK ) specializes in NAND flash and solid-state storage. Micron was up about 700% year over year and Sandisk was up more than 4,000%. Both have subsequently retreated from their peaks, illustrating how quickly enthusiasm can turn.
The excitement created the largest-ever U.S. IPO in SpaceX ( SPCX ) , while SK Hynix ( 00060 ), a leading supplier of high-bandwidth memory, raised $26.5 billion in the largest U.S. IPO ever by a foreign company. Its ADRs rose initially, but subsequent volatility exposed the risk of buying into peak optimism, with SK Hynix falling 15% in the Asian market.
