Analog Century Management's hedge fund returned 61% year-to-date, driven largely by gains in memory and storage companies that are benefiting from AI's heavy demand for data center infrastructure. Chief Investment Officer Val Zlatev points out that memory prices have surged four to five times as AI models require larger context windows and more storage, positioning suppliers of these less visible components to continue benefiting from the AI buildout.
Summaries like this, in your inbox every morning.
Sign up free →What happened
Analog Century Management's $1 billion（約1600億円） Long/Short hedge fund gained 9.4% in June, bringing year-to-date returns to 61% since the strategy began trading in 2018. The firm's positions in memory and storage companies drove much of the outperformance, with Sandisk rising 858% in the first half and Micron Technology gaining 304%.
Why it matters
Memory-chip suppliers have benefited from data centers and larger AI model context windows creating heavier storage demands. Chief Investment Officer Val Zlatev argues that memory prices have increased four to five times due to this demand surge, and suppliers were not fully prepared—a dynamic that may signal sustained upside for infrastructure-layer AI plays beyond the headline semiconductor names.
What to watch
Analog Century also holds positions in Applied Materials, Lumentum Holdings, and Astera Labs, concentrating its AI exposure in the hardware and infrastructure segments tied to hyperscaler and data center demand. Other AI-focused hedge funds have also posted strong gains—Whale Rock Capital's flagship fund returned 72.5% in the first half.
Analog Century's outperformance reflects a shift in how investors are positioning for AI's infrastructure buildout. While attention often focuses on chip designers like Nvidia, the fund's strategy concentrates on the supporting layers—memory, storage, and networking components that enable hyperscalers and data centers to actually deploy AI models at scale. This positioning has paid off substantially, with memory chipmaker Micron and storage specialist Sandisk among the year's biggest gainers.
Val Zlatev's observation that memory prices have risen four to five times offers a concrete lens on the supply-demand imbalance. Larger context windows in advanced AI models require more on-device and data center storage capacity, and that demand has apparently outpaced suppliers' preparedness. For investors and business leaders tracking AI spending, this suggests that the infrastructure bottleneck may persist, supporting continued demand for these less visible but foundational components. The performance of competing funds like Whale Rock Capital and Coatue Management, which also returned strong gains in the first half, indicates that capital is broadly recognizing this dynamic and moving toward the computing-power suppliers behind AI growth.
No discussion yet for this article
Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.
Get Started FreeFree · takes 30 seconds · unsubscribe anytime
1 minute a day. The AI essentials.
200+ sources · Email / LINE / Slack
