tech
March 11, 2026
The memory stock cycle of boom-bust-repeat is over, executives say
Shares of Micron have skyrocketed 370% over the past year, while Sandisk is up more than 1100%.
TL;DR
- AI has structurally broken the traditional boom-bust cycle of memory stocks.
- Memory prices are surging as AI chipmakers prioritize supply over consumer electronics.
- Hyperscalers are increasingly preferring long-term contracts to secure memory supply for years.
- Shares of Micron and Sandisk have seen substantial increases, over 370% and 1100% respectively.
- The current AI workloads necessitate a more memory-intensive architecture than previous industry standards.
- Meta has expressed concerns about the supply of high-bandwidth memory (HBM) needed for its AI initiatives.
- Meaningful relief in memory supply is not expected until 2027 at the earliest.
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