S&P breaks through 7000 points for the first time! With SanDisk doubling as the leader, why are 'hard assets' such as storage becoming the new darlings of the US stock market?

On January 28, 2026, US stocks reached a historic moment: $S&P 500 Index (.SPX.US)$ Breaking through the 7000-point mark for the first time during trading.

This milestone not only symbolizes long-term confidence in a bull market but also validates the resonance of three core drivers: explosive expectations brought by AI, highly resilient macroeconomic data, and the Federal Reserve's steady progress towards interest rate normalization.

Who is leading the new highs in US stocks?

Looking at this year’s list of top gainers, investors will notice a completely different picture: the top five are no longer just tech giants, but rather $SanDisk (SNDK.US)$ 、 $Western Digital (WDC.US)$ 、 $Seagate Technology (STX.US)$ 、 $Micron Technology (MU.US)$ these four storage titans, among which SanDisk’s stock price has already doubled, followed closely by $Lam Research (LRCX.US)$ 、 $KLA Corp (KLAC.US)$ 、 $Applied Materials (AMAT.US)$ semiconductor equipment giants such as [name], with annual gains exceeding 30%.

In fact, this change in market dynamics is no accident but an inevitable result of the deepening AI trend. Investors are witnessing a clear industrial chain transmission path:

The Supercycle of Storage:AI training and inference have imposed unprecedented demands on data throughput. Whether it’s HBM (High Bandwidth Memory) or enterprise-grade high-capacity SSDs, demand is exploding. Previous cycles were about 'supply-demand equilibrium,' but the current cycle is all about 'shortages leading to price hikes.'

Capital Expenditures by Tech Giants:Cloud service providers and tech giants are sparing no expense in their race to acquire hardware for AI dominance.

The Boom in Equipment and Materials:To expand production, memory manufacturers must purchase equipment. Increased memory production + technological iteration = a new spring for semiconductor equipment.

Simply put, storage is the 'granary' of AI, while equipment manufacturers are the 'construction teams' building these granaries. When grain prices soar, construction teams naturally make a fortune.

In fact, faced with this AI-driven supercycle of storage, instead of speculating on individual stock fluctuations, it might be better to gain exposure to the global computing power landscape via ETFs. Besides those listed in the US market, $iShares Semiconductor ETF (SOXX.US)$ and $VanEck Semiconductor ETF (SMH.US)$ the ones in the Hong Kong market $Global X Asia Semiconductor ETF (03119.HK)$ are also worth paying attention to: they hold significant stakes in SK Hynix and Samsung, effectively controlling half of the global HBM market, plus $Taiwan Semiconductor (TSM.US)$ Thanks to the advanced process, it is truly the shovel stock combination that can reap the fattest profits from AI hardware.

Additionally, Intel, Moderna, and Newmont are also at the forefront. These companies each have their own positive news drivers:

Firstly, $Intel (INTC.US)$ Year-to-date, the share price has surged over 30%. In terms of developments, due to the bulk purchases by hyperscale cloud service providers, Intel and AMD's server CPU production capacity for all of 2026 has been almost entirely booked. To address the extreme supply-demand imbalance and ensure stable future supply,both companies plan to raise server CPU prices by 10-15%.

Moreover, Intel’s rise has also benefited from the Trump administration. Supply chain sources indicate thatFollowing Apple, NVIDIA’s next-generation GPU will also partner with Intel to please Trump.This shift reflects how U.S. tech companies, under political pressure, tariff threats, and considerations for supply chain resilience, have had to transition from a model heavily reliant on Taiwan Semiconductor to a new strategy of 'multi-source supply, risk diversification.' In addition to NVIDIA and Apple, other firms such as Google, Microsoft, AWS, Qualcomm, Broadcom, AMD, and Tesla are also in talks with Intel for cooperation.

Finally, reports show that Intel’s CFO recently purchased nearly 250,000 shares of Intel for the first time since 2024. This signals confidence from insiders within the company.

Second, $Moderna (MRNA.US)$ The stock has erased last year’s slump, soaring over 50% this year.In terms of updates, Moderna and Merck & Co announced the median five-year follow-up data from their Phase 2b KEYNOTE-942/mRNA-4157-P201 study. Analysis showed that at the median five-year follow-up, compared to Keytruda alone, the combination therapy of intismeran autogene with Keytruda significantly reduced patients’ recurrence or death risk by nearly half.

Finally, $Newmont (NEM.US)$ It has benefited from the surge in precious metals this year, skyrocketing over 260% since 2025.PreviouslyElon Musk Warns of a Silver Crisis! With Both Gold and Silver Reaching New Highs, How Should Investors Ride This 'Super Cycle'?We’ve also analyzed the logic behind this surge in precious metals. Fellow investors who are interested can click to check it out.

Summary

Standing at the new all-time high of 7000 points for the S&P, what we see is no longer the solo performance of a single tech giant but a profound restructuring of market logic. From the ‘earnings realization’ of storage and equipment makers, to Intel’s ‘value reassessment’ amid geopolitical shifts, to the ‘cyclical comeback’ of pharmaceuticals and precious metals, the US stock market is entering a new phase that is more fundamentally grounded and broader in scope.

This also serves as a reminder to investors: In this cross-cycle bull market, simple index investing may no longer suffice. Digging deep into industrial chains to uncover 'picks-and-shovels stocks,' while staying sharply attuned to policy shifts and macroeconomic cycles, will be key to outperforming in this new era above 7000 points.

642K Views