Why Storage Chips

The next 10x stock in U.S. stocks is likely to be in storage chips.
You might say, SanDisk is up 26 times in a year, Micron over 10 times—how could there be another 10x?
Look at it from a different perspective. Nvidia has increased 100 times from 2016 to 2024, going through three major corrections in between.
Every time it was cut in half, everyone thought "it's over."
Storage chips might be at that point now— the first wave of growth is over, but the real main upward trend may not have started yet.
To clearly explain the logic behind storage chips:
GPUs are the brains of AI, storage chips are AI’s memory.
No matter how fast the brain is, if the memory can't keep up, the whole system gets stuck.
An AI server requires 8-10 times the memory of traditional servers, and over 3 times the flash storage.
Every batch of new Nvidia GPUs sold needs supporting storage chips that are several times larger.
And AI isn’t just storage-hungry during training; inference is even more demanding—every time you chat with ChatGPT, the backend is frantically reading and writing storage chips.
Training is a one-time process; inference is permanent.
Inference volume increases daily, and storage needs grow daily as well.
Looking at supply:
Goldman Sachs data shows that by 2026, the global DRAM supply-demand gap will be 4.9%, NAND will be 4.2%, and HBM will be 5.1%, all the most severe shortages in the past 15 years.
Can expanding capacity solve this? Not in the short term—building new capacity takes 18-24 months.
And HBM has a harsh physical law: producing one HBM chip requires three times the wafer area of regular memory, and each high-end chip consumes three times the capacity of regular chips.
The more high-end chips are in short supply, the more ordinary chips are also in short supply.
Price increases are not just for one product but across the entire supply chain.
According to TrendForce data, DRAM contract prices are expected to increase by 58%-63% quarter-over-quarter in Q2, NAND by 70%-75%.
Such a price surge has only occurred two or three times in the history of storage chips.
Next, I will discuss specific stocks.