Thanks for the memory

Although the S&P 500 tech sector is poised to end this week with a loss, three of its six industries have gained ground, including the Semiconductor & Equipment group.

While “semiconductor” likely brings to mind high-profile stocks like NVIDIA (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Intel (INTC), a different collection of stocks from this group have been providing a great deal of momentum to the chip space lately.

Companies that specialize in computer memory have been a pocket of strength during a mostly tepid stretch for the tech sector. Since late November—and especially this year—multiple memory stocks, including Micron (MU), Sandisk (SNDK), and Western Digital (WDC) have posted sizable gains:

Meanwhile, the best-performing traditional chip stock (INTC) over the same period gained a little less than WDC, while the Nasdaq 100 (NDX) tech index rallied roughly 4%.

One of the catalysts behind the recent momentum in these stocks is the same one that has contributed to moves in other areas of tech, as well as in energy and some metals—the computing needs of GenAI. Just as the growth of AI datacenters has driven concerns about an energy bottleneck—fueling interest in everything from nuclear energy to natural gas—concerns about a potential “memory bottleneck” has highlighted the companies specializing in this technology.

Morgan Stanley & Co. analysts recently described the potential risk to the space as the challenge memory companies face in executing and transitioning in light of memory demand, not that the demand itself appears to be in danger of dropping off.¹

That said, the ups and down of many energy stocks—specifically, nuclear and natural gas names cited as potential beneficiaries of the AI boom—highlight that fundamental tailwinds do not always translate into uninterrupted rallies.

Market Mover Update: The de-escalation of tensions surrounding Denmark was followed by reversals of many of the market moves from the start of the week, but precious metals have kept rallying. Gold prices inched closer to $5,000 on Thursday. Spot gold prices closed above $4,900 for the first time, while February gold futures (GCG6) traded as high as $4,925.50. Meanwhile, silver pushed closer to the $100 milestone, with March silver futures (SIH6) rallying more than twice as much as gold on a percentage basis and hitting a high of $96.73.

Today’s numbers include (all times ET): Consumer Sentiment (10 a.m.), Leading Economic Indicators Index (10 a.m.).

Today’s earnings include: Booz Allen Hamilton (BAH), SLB (SLB), Webster Financial (WBS).

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¹ MorganStanley.com. Memory—How to Play the New AI Bottleneck. 1/15/26.