Micron, Sandisk, and SK Hynix shares skyrocket as AI infrastructure demand fuels DRAM and NAND supply shortages and price spikes.
Memory chip stocks have rallied sharply over the past year, driven by surging AI-related demand and supply constraints. Micron Technology (MU) has climbed over 700%, while Sandisk (SNDK) soared nearly 3,400%, and SK Hynix (SKHY) gained 600% in Korean trading before its U.S. IPO.
The rally stems from a supply-demand imbalance in DRAM and NAND memory, critical for AI infrastructure. High-bandwidth memory (HBM), used with GPUs to reduce latency, is in particularly short supply, pushing prices higher. Flash memory, used in enterprise SSDs, faces similar constraints as manufacturers prioritize AI-driven production.
The current supercycle reflects broader industry shifts, with memory makers reallocating resources to meet AI demand. Analysts note this trend may persist as AI adoption accelerates, sustaining upward pressure on prices and margins.