AI Rotation Shifts to Storage as Chip Rally Nears Record Highs

The AI semiconductor surge has rotated from Nvidia-led GPUs into memory and storage names amid sustained hyperscaler spending and Iran-related supply pressures. Early-May gains in AMD, Broadcom and TSMC expanded by mid-May to SanDisk, Micron and Western Digital as inference workloads lifted NAND and DRAM demand. Despite the Iran conflict raising helium, energy and freight costs, the sector has added roughly $3.8 trillion in market value since late March while analysts debate whether valuations have become extended.