Finance
Memory chipmakers rise as global supply shortage whets investor appetite
Memory chipmakers rise as global supply shortage whets investor appetite
Published by Global Banking and Finance Review
Posted on January 5, 2026
Jan 5 (Reuters) - Shares of the world's top memory chip providers rose on Monday as investors bet on further price gains due to a global supply crunch driven by surging demand for artificial-intelligence infrastructure.
Samsung co-CEO TM Roh described the shortage as "unprecedented" in an interview with Reuters, echoing peers who have warned that constraints could persist for months, if not years, as the race to build AI infrastructure consumes supply.
That demand has prompted memory chipmakers to divert manufacturing capacity toward high-bandwidth memory for AI servers, squeezing supply to almost every other sector such as flash chips used in USB drives and smartphones.
Prices in some segments have more than doubled since February last year, according to market-research firm TrendForce, drawing in traders betting that the rally has further to run.
Micron was up more than 3% in premarket trading while South Korea-listed shares of SK Hynix and Samsung closed up nearly 3% and 7.5%, respectively.
Micron CEO Sanjay Mehrotra said last month he expects memory markets to remain tight past 2026. The company's shares gained a whopping 240% in 2025, far outpacing the benchmark chip index's 42% gain.
Samsung's shares more than doubled in value last year, while SK Hynix jumped nearly four-fold.
Smaller peers SanDisk, Western Digital, Applied Digital and Seagate Technology were up between 2.5% and 4.5% in premarket trading on Monday.
Memory is a highly cyclical industry, characteristically experiencing extreme downturns and highs with volatile pricing levels.
Analysts from Morningstar and J.P. Morgan have estimated that the ongoing upturn, routinely referred to as the "supercycle", might persist well into 2027.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)
Frequently Asked Questions about Memory chipmakers rise as global supply shortage whets investor appetite
1What is a memory chip?
A memory chip is a small electronic component that stores data for computers and other devices. It is essential for the functioning of devices, allowing them to read and write data quickly.
2What is artificial intelligence?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. AI is used in various applications, including data analysis and automation.
3What is a supply shortage?
A supply shortage occurs when the demand for a product exceeds its available supply. This can lead to increased prices and competition among buyers.
4What is a stock market?
A stock market is a platform where shares of publicly traded companies are bought and sold. It serves as a barometer for the economy and allows companies to raise capital.
5What is price gain?
Price gain refers to an increase in the value of an asset, such as stocks or commodities, over time. Investors often seek price gains to realize profits from their investments.
