Memory chip prices have surged five to seven times according to Intel's CEO, with HBM supply unable to keep pace with demand from major manufacturers. Memory now comprises 70-80% of low-end phone and laptop costs, and shortages are expected to worsen through 2027.
KB Securities projects major hyperscalers will invest $1.3 trillion in AI infrastructure in 2026, up 60% year-over-year, with memory expected to grow from 14% to 40% of AI capex. Samsung and SK Hynix face severe supply constraints as HBM production crowds out commodity DRAM, potentially driving record earnings and significant stock re-rating through 2027.