Key Points
- A global shortage of memory chips, driven by AI demand, is pushing prices and stock values higher.
- Samsung’s co-CEO called the current shortage “unprecedented.”
- Chipmakers are shifting production to high-bandwidth memory (HBM) for AI, squeezing the supply of other chips.
- Prices for some memory chips have more than doubled since last year. Analysts are calling this a “supercycle” that could last into 2027.
The world’s biggest memory chip companies saw their stock prices jump on Monday as a global supply shortage, driven by the AI boom, continues to push prices higher. Investors are betting that the rally has significant further room to run, with some experts calling the current market a “supercycle” that could last for years.
The problem is simple: the race to build new AI data centers is consuming a huge amount of specialized, high-bandwidth memory (HBM). This has forced chipmakers like Samsung, SK Hynix, and Micron to shift their production lines to focus on HBM, which in turn has squeezed the supply of the regular memory chips used in everything from smartphones to USB drives.
The shortage is so severe that Samsung’s co-CEO, TM Roh, recently called it “unprecedented.” His warning echoes what other industry leaders have been saying for months: the constraints could last well past 2026. This has sent the prices for some types of memory chips soaring, with some more than doubling since last February.
Investors have taken notice. On Monday, Micron’s stock rose about 2%, while SK Hynix and Samsung jumped nearly 3% and 7.5%, respectively. This follows a spectacular 2025, in which Micron’s shares gained 240% and SK Hynix nearly quadrupled in value.
The memory chip industry is known for its wild swings, with periods of boom and bust. But the current AI-fueled demand is something new. Analysts at major banks now predict this “supercycle” could continue well into 2027, which would be great news for companies that make the tiny chips powering the future of technology.
