SK Hynix, Samsung Electronics Co. Ltd. (OTC:SSNLF), and Micron Technology Inc. (NASDAQ:MU) are leading a strong rally in semiconductor stocks as artificial intelligence demand continues to tighten the global memory market.
Micron Technology is up over 242% in the last 12 months, reflecting investor optimism around memory chips that power AI systems.
Memory sits at the heart of AI computing, CNBC reported on Tuesday.
South Korea's top memory chip producers are posting solid gains in 2026, with SK Hynix up around 11.5% and Samsung Electronics advancing nearly 16% year-to-date. Micron has climbed about 16.3% over the same period, the report added.
Chips used to train and run models from companies like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) rely heavily on high-performance memory, and as Big Tech pours billions into AI data centers, supply remains tight.
That pressure is most visible in DRAM, a key memory component used in AI servers.
DRAM prices surged in 2025 and are expected to rise another 40% through the second quarter of 2026, according to Counterpoint Research.
Analysts told CNBC that memory, not logic chips, is driving the latest semiconductor rally.
Pricing Power Returns As Shortages Deepen
This supply-demand imbalance is giving memory giants significant pricing power.
Samsung has raised prices on key memory chips by as much as 60% since September, capitalizing on tight supply and panic ordering from customers scrambling to secure inventory.
Reuters reported that Samsung delayed its usual pricing update before rolling out the hikes.
The AI-driven shortage is pushing up costs for server makers and could eventually raise prices for consumer electronics like smartphones and PCs.
Panic buying has rippled across the supply chain, forcing some customers to delay purchases of other semiconductor components.
Higher prices are strengthening Samsung's earnings outlook.
The rivals are benefitting from similar dynamics.
SK Hynix Sells Out, Micron Expands U.S. Footprint
SK Hynix said surging AI demand has pushed it into a full-blown memory supercycle, with its entire chip supply for next year already sold out.
The company plans to begin shipping next-generation HBM4 chips in the fourth quarter and has secured customer orders for all of its DRAM, HBM, and NAND production through 2026.
SK Hynix also disclosed a letter of intent to supply memory to OpenAI, highlighting its deepening role.
To keep pace, the company plans to significantly boost capital spending next year, even as trade restrictions add pressure to its China operations.
Meanwhile, Micron is investing aggressively to capture long-term AI-driven growth.
The company will break ground in January 2026 on a massive New York megafab.
The campus could eventually house up to four fabs, making it the largest semiconductor facility in the U.S.
Micron says the expansion positions it to meet surging AI memory demand while reinforcing its status as the only U.S.-based memory chip manufacturer.
MU Price Action: Micron Technology shares were down 0.33% at $338.42 at the time of publication on Thursday, according to Benzinga Pro data.
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