Memory Prices Surge, Lifting SK Hynix and Micron

On July 23, 2026, memory prices surged due to strong AI data-center demand and constrained supply, boosting shares of SK Hynix, Micron, and SanDisk. The rally coincided with SK Hynix’s report of record revenue and profit for the quarter ended March 31, 2026.

Memory Price Surge and Supply Constraints

Samsung, SK Hynix, and Micron produce more than 90% of global DRAM output, making the market highly sensitive to shifts in data-center demand and manufacturers’ capacity allocation. Even modest shifts toward higher-value products can sharply affect prices.

Conventional DRAM prices rose roughly 80–90% in a single quarter around early 2026. Overall memory prices increased about 50% in the fourth quarter of 2025 and were expected to climb another 40–50% by the end of the first quarter of 2026 as data-center operators paid premiums to secure inventories. This surge reversed a prior correction and boosted sector profitability.

Manufacturers have redirected output toward stacked high-bandwidth memory (HBM) and high-capacity server DDR5, reducing production of PC and consumer memory. This shift creates a mix-driven cycle where richer product mixes, not unit growth, drive profits. DRAM supply growth for 2026 is estimated at about 16%, while HBM capacity is effectively sold out. Analysts expect supply growth to lag demand through at least 2027–2028.

Company Results and Market Access

For the quarter ended March 31, 2026, SK Hynix reported revenue of about $38 billion and net profit of $26.5 billion, with an operating margin near 72%. These gains came despite flat DRAM bit growth, driven by a mid-60% rise in DRAM average selling prices. The company controls roughly 56% of the HBM market, having been the first to produce HBM in 2013. It maintains a multiyear technology partnership with Nvidia that supports Nvidia’s AI infrastructure roadmap.

SK Hynix crossed the $1 trillion market-value threshold in late May 2026, reaching about $1.12 trillion. Its American depositary receipts began trading on Nasdaq as SKHY on July 10, 2026, providing U.S. investors direct access to the HBM leader.

Micron also posted strong results. In fiscal second quarter 2026, its revenue rose 196% year-over-year, and non-GAAP earnings increased 682%. Analysts project forward earnings per share for the fiscal year starting in September at about $155, implying a forward price-to-earnings ratio near six times. Micron is widely seen as a major beneficiary of HBM and server DDR5 demand in data centers.

Storage companies like SanDisk have joined the advance as AI-driven data-center spending lifts demand for premium NAND. Some investment-bank forecasts project memory prices could rise roughly 25% on data-center demand, supporting recent sector buying.

Market commentary describes the rebound as a repositioning after a valuation reset rather than a collapse in fundamentals. Despite strong earnings growth, major memory makers trade at relatively low forward multiples. Executives caution that current AI-related pricing levels are unlikely to be sustainable over the longer term. Meanwhile, an antitrust lawsuit alleges that Samsung, SK Hynix, and Micron colluded to restrict conventional DRAM supply and push prices higher, creating a legal overhang that market participants continue to monitor.