The rapid advancement of AI and surging demand for computing power have fueled intense market interest in memory chips. Leading stocks—from Micron Technology and SanDisk in the U.S. to Demingli, Shannon Core Creation, and Longsys in China’s A-share market—have all posted significant gains recently.
According to East Money Choice data, the memory chip index has surged 68.53% since hitting a low on April 9. Within the sector, 20 stocks (including newly listed ones) have doubled in price, with Shannon Core Creation leading at 437.98%, followed by East Silicon (418.96%) and Longsys (246.53%). Other top performers include Jingzhida, Demingli, and Xcceleration Data.
**01. Memory Chip Prices Soar Amid Supply-Demand Mismatch** The sector’s strength is widely attributed to industry-wide price hikes driven by supply-demand imbalances. Counterpoint Research’s biweekly *GenAI Memory Solutions* report notes a 50% cumulative rise in memory prices this year, with another 50% increase expected by Q2 2026 due to key chip shortages.
Counterpoint highlights tightening supplies of traditional LPDDR4 as a core issue. To meet AI-driven demand for advanced chips, suppliers are shifting capacity to higher-end processes, disrupting market dynamics. Spot prices now show anomalies: DDR5 for servers and PCs trades at ~$1.50 per gigabit (Gb), while older DDR4 for consumer electronics has surged to $2.10—even surpassing advanced HBM3e (~$1.70).
The firm forecasts over 20% DRAM production growth by 2026. Research Director MS Hwang notes: “Samsung may reallocate its expanding 1C process capacity; SK Hynix is boosting output and sales targets; CXMT could outperform; and Micron—traditionally ROI-focused—is unlikely to stay idle.”
SK Hynix reportedly sold out its 2025 memory chip capacity, while Micron expects tight supplies through 2026. CLSA’s Sanjeev Rana observes: “Demand—advanced or legacy memory—outstrips supply across the board. This DRAM/NAND price rally could last multiple quarters.”
**02. Micron’s $9.6B Bet on AI Memory** Beyond pricing tailwinds, positive developments are buoying the sector. Micron plans to invest ¥1.5 trillion (~$9.6B) in a new Japan plant for AI memory chips, per Nikkei. The facility, to be built at its Hiroshima site from May 2025, will produce HBM chips, with shipments starting around 2028. Japan’s government may subsidize up to ¥500B.
**03. Space Data Centers: A New Frontier** Tech giants are also eyeing space-based data centers, which could drive fresh demand for memory chips. NVIDIA and startup Starcloud recently launched an H100-equipped satellite via SpaceX’s Falcon 9. Google’s “Project Sunbeam” aims to relocate AI data centers to space by 2027, with launch costs potentially below $200/kg by the mid-2030s.
Elon Musk predicts solar-powered AI satellites will offer the lowest computing costs within 4–5 years, stating: “To harness Earth’s energy millions-fold, we must go to space.”
**04. Leveraged Funds’ Top Picks** Since April 9, leveraged funds have heavily bought Shannon Core Creation (¥3.33B net purchases), followed by GigaDevice (¥2.9B), Montage Tech, East Silicon, and Longsys.
**Outlook** Zhongyuan Securities sees a “super cycle” for memory as AI and multi-modal models explode storage needs, with domestic module makers gaining market share. Huatai Securities notes China’s semiconductor sector posted 50% YoY net profit growth in Q1–Q3 2025, with Q3 momentum accelerating. Local breakthroughs in R&D and capacity may speed up supply-chain localization, particularly in equipment and materials.