Micron Technology and Sandisk have benefited significantly from the memory chip boom over the past year, as the demand for the dynamic random-access memory (DRAM) and NAND flash storage chips they manufacture has significantly exceeded supply.
Of course, investors have been rotating out of memory stocks lately, as evidenced by the 27% decline in the Roundhill Memory ETF over the past month
Both Micron and Sandisk have witnessed significant pullbacks in their stock prices over this period. However, the artificial intelligence (AI)-fueled memory chip demand isn’t going to fade away any time soon. According to Deloitte, the memory crunch is unlikely to ease until 2029.
While that’s great news for both Micron and Sandisk, there is another company that’s benefiting from the incredible memory demand — Lam Research (NASDAQ: LRCX). Let’s look at the reasons why this semiconductor stock could become the biggest winner of the AI-driven memory boom. The memory boom has given Lam Research a big shot in the arm Lam Research sells the equipment that allows Micron and Sandisk to manufacture DRAM and NAND flash chips.