AI boom drives memory chip stocks higher

SK Hynix, Samsung Electronics and Micron ar post substantial gains

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Image: Getty via Dennis

Chip stocks are climbing at the start of the year, spurred by strong demand from the artificial intelligence sector, CNBC reports. Leading memory chipmakers such as SK Hynix, Samsung Electronics and Micron are booking substantial gains.

The rally is being driven mainly by the crucial role memory chips play in AI applications. As tech giants pour money into AI development and build massive data centers, demand for memory chips is rising, especially for dynamic random-access memory (DRAM), which is essential for training and running AI models. As a result, DRAM prices have climbed sharply and are expected to rise by a further 40 percent through the second quarter of 2026.

Those upbeat prospects are good news for companies like Samsung, SK Hynix and Micron, as they are well positioned to tap into the growing demand for memory chips and secure higher prices. Analysts are forecasting strong profit growth for these companies in their upcoming fourth-quarter earnings reports.

The build-up in memory chip inventories is also having a positive impact on other parts of the semiconductor supply chain. Companies such as Intel and Taiwan Semiconductor Manufacturing Co, which produce a range of semiconductors, stand to benefit from the ongoing rise of AI. ASML, a Dutch company specialising in the production of critical equipment for manufacturing advanced chips, has already seen its share price rise this year.

Analysts at Bernstein have raised their price target for ASML shares, citing the wave of capacity expansion expected in the memory chip industry in 2026 and 2027. They predict that ASML will benefit from the next DRAM supercycle, driven by higher production requirements for advanced memory chips. That positive outlook is further reinforced by comments from SK Hynix pointing to a potential HBM (high bandwidth memory) supercycle, suggesting that this trend is not just a temporary spike, but a more lasting shift powered by the build-out of AI infrastructure.

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Read More: AI Artificial Intelligence ASML Chips Micron Samsung Electronics SK Hynix