"Shares of major manufacturers such as Samsung, SK Hynix, and Micron rose sharply on Monday, with prices in some segments more than doubling since February last year. Demand for AI infrastructure is outstripping supply. The market is responding to warnings from top executives. Samsung co-CEO TM Roh describes the shortage as "unprecedented." His colleagues at other manufacturers warn that the constraints could last for months, if not years. The picture is clear: the race to build AI infrastructure is consuming virtually all available production capacity."
"There is a clear reason for the shortage. Memory chip manufacturers are shifting their production capacity to high-bandwidth memory for AI servers. This leaves less for other sectors. Flash chips for USB drives and smartphones, for example, are becoming scarce. The price increases are significant. Market researcher TrendForce reports that prices in some segments have more than doubled since February last year. A standard 32GB DDR5 memory package cost around €100 in mid-2025, but has since risen to €400."
Major memory manufacturers experienced sharp stock gains as AI infrastructure demand outstripped available supply, with some segment prices more than doubling since February last year. Production capacity is shifting toward high-bandwidth memory for AI servers, reducing supply for flash chips used in USB drives and smartphones. A standard 32GB DDR5 memory package rose from about €100 in mid-2025 to €400. Market researcher TrendForce reports significant price increases. Industry projections expect tight memory markets to persist beyond 2026. Micron, Samsung, and SK Hynix posted substantial stock rallies, reflecting investor bets on continued price increases driven by AI capacity demand.
Read at Techzine Global
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