SanDisk stock gained 315.3% and Western Digital shares surged 166.1% as global investors pivoted sharply from AI software to infrastructure providers. The rally spans markets from Silicon Valley to Asian chip hubs, creating a worldwide divide between hardware suppliers and application developers.
Micron Technology reported record revenues and expanding margins in Q1 fiscal 2026, reflecting surging demand for memory chips across global AI systems. The performance contrasts with software companies facing investor skepticism from New York to London about their ability to monetize AI features.
Two companies announced $400 billion in combined capital expenditures for AI infrastructure, while Nebius disclosed $16-20 billion in capex with 60% funded from operating cash flow. The spending wave targets data centers, chips, and storage facilities across multiple continents rather than software development.
Price-to-earnings ratios between hardware and software segments show widening gaps in markets worldwide. Infrastructure companies trade at lower multiples despite revenue growth, while software stocks carry premium valuations that international investors now question. Capital flows from Tokyo to Frankfurt reflect this reassessment.
The correction separates companies with physical products and predictable revenue from those promising future AI capabilities. Storage makers benefit from immediate demand as data centers expand globally. Chip manufacturers secure orders through long-term contracts spanning Asia, Europe, and North America. Software firms face mounting pressure to prove sustainable income models.
Analysts tracking 6-12 month performance note infrastructure stocks outpacing software by triple-digit percentages across global exchanges. The trend suggests investors worldwide now favor proven hardware economics over software growth stories. Companies building servers, chips, and storage infrastructure attract capital that previously chased AI application developers.
The bifurcation creates two distinct valuation environments in international markets. Infrastructure providers trade on tangible metrics like fab capacity and chip output. Software companies face scrutiny over user adoption and pricing power. This split may persist until AI applications demonstrate clear paths to profitability matching their earlier hype.
Sources:
1 Yahoo Finance, "Micron CEO drops a bombshell after Micron’s huge earnings beat" (March 22, 2026)
2 Yahoo Finance, "Is Micron a Buy as Revenue Explodes Higher?" (March 22, 2026)
3 Globe Newswire, "Willis partners with Circle Asia to launch Asia’s first insurance facility for collectors and galler" (March 23, 2026)
4 Yahoo Finance, "CNOOC Names Huang Yongzhang as Chief Executive Officer" (March 23, 2026)
5 Nasdaq, "Could Buying $10,000 of Sandisk Make You a Millionaire?" (March 22, 2026)