The surge in artificial‑intelligence workloads is driving an unprecedented boom in DRAM and NAND memory chips, pushing prices up by roughly 50% in the past year. This price explosion has catapulted Samsung Electronics and SK Hynix stocks to new highs, while device makers grapple with tighter margins and rising component costs.
AI Demand Fuels Unprecedented Memory Chip Prices
AI‑focused data centers require massive bandwidth and low‑latency storage, creating a relentless appetite for high‑capacity memory. As AI models grow larger, manufacturers are racing to secure DRAM and NAND supplies, tightening the market and driving price spikes.
DRAM and NAND Price Explosion
Over the last twelve months, average DRAM and NAND module prices have risen about 50%. Forecasts suggest another 40%–50% increase in the coming quarter, with a 64 GB registered DIMM projected to climb from $255 to around $700.
Memory Makers Capture Massive Stock Gains
The price surge translates directly into equity performance for the world’s leading memory producers.
Samsung Electronics Rally
Samsung Electronics shares have surged more than 60% in the past six months, reflecting strong demand for its advanced DRAM and NAND portfolios.
SK Hynix Outpaces the Market
SK Hynix has experienced a staggering gain of over 180% in the same period, positioning the company as a top beneficiary of the AI‑driven memory shortage.
Downstream Device Makers Feel the Pressure
Higher memory costs are squeezing profit margins for smartphone, PC, and gaming console manufacturers.
Impact on Smartphone and PC Margins
Average selling prices for smartphones are expected to rise 3%–5%, while overall device shipments face a modest decline. Major OEMs such as Dell, Lenovo, HP, and Xiaomi have seen stock declines ranging from 9% to 39%.
Investor Outlook for AI‑Linked Memory Stocks
Investors are increasingly targeting memory‑centric equities as a proxy for AI growth, betting that continued AI adoption will sustain demand for high‑performance storage.
Supply Constraints and Future Capex
While Samsung, SK Hynix, and Micron have announced new capital‑expenditure plans, long lead times for fab construction mean supply constraints could persist for several years, keeping upward pressure on prices.
What’s Next for the AI Memory Market?
If AI adoption maintains its trajectory, demand for high‑bandwidth, low‑latency memory will intensify, potentially reshaping hardware budgets toward storage over traditional CPUs and GPUs. Companies that secure stable memory supplies at reasonable costs stand to capture both margin upside and market share in AI‑driven workloads, while device makers must balance cost passes with consumer demand.
