Memory chip makers head into 'supercycle' as stocks jump 30% in a week
Wall Street analysts say AI data-center orders are pulling DRAM and NAND markets into a multi-year supercycle. SK Hynix, Micron and Samsung shares have jumped as much as 30% in the past week alone. With supply tight, contract prices could stay elevated well into 2027.
Memory chip stocks are rallying on the back of an unprecedented demand wave from AI data centers, with Wall Street analysts now openly using the word 'supercycle.' Bank of America, Morgan Stanley and Citi all argue that tight DRAM and NAND supply conditions will persist for at least two years.
SK Hynix shares are up about 30% in the past week, with Micron and Samsung Electronics not far behind. Hyperscaler capex on AI infrastructure is forecast to stay elevated through 2027, handing memory makers unusually wide profit margins as contract prices reset higher each quarter.
On the supply side, years of postponed fab investment and a difficult technology transition to HBM3E and HBM4 are deepening the bottleneck. Analysts say there is room for memory equities to run further, though the same dynamic threatens to squeeze margins at downstream buyers, including server makers and cloud providers.
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