AI drives demand for memory and storage devices, Micron/Seagate continues to soar

The market is optimistic about the growth in demand driven by artificial intelligence (AI). Memory and storage stocks surged simultaneously on the 10th, becoming one of the best-performing stocks in the S&P 500 Index that day.

Investopedia reported that analysts at Mizuho Securities are optimistic that demand for high-bandwidth memory (HBM) chips from memory giant Micron will continue to be strong until next year (2026) and next year (2027). It has an advantage in pricing and is expected to drive profit margin growth.

Micron surged 6.46% on the 10th, closing at US$253.30, and has soared twice since the beginning of the year: storage equipment majors Veton Electronics and Seagate also rose 6.91% and 5.24% respectively on the same day.

Expert analysis shows that memory and storage stocks continue to surge, showing that AI has extremely strong demand for memory and data storage solutions.

Due to the increasingly serious memory shortage problem, spot market prices have tripled. There are rumors in the market that Samsung Electronics has suspended the DDR5 memory chip contract price announcement originally scheduled for October and will postpone it to mid-November.

South Korean memory maker SK Hynix also recently released strong financial reports and said that it has sold out all its chip production capacity for the next year.

Industrial research organization TrendForce estimates that traditional DRAM prices will increase by 18% to 23% in the fourth quarter.

Experts analyze that the DRAM market is mainly monopolized by the three giants Micron, Samsung and SK. Price fluctuations are like commodities. The accelerated growth of DRAM demand may push up the prices of all manufacturers, which is regarded as bullish news by the entire industry.

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