Memory chip giants drive semiconductor rally as shortages push prices higher

Semiconductor stocks climbed early in 2026 led by memory chip makers as AI-related demand and DRAM shortages drove price gains, and Counterpoint Research forecasts memory prices to rise about 40% through the second quarter of 2026.

Semiconductor stocks rose at the start of 2026, with gains concentrated in memory chip companies. The article links that move to strong AI-related demand for memory used in data centers. It reports DRAM shortages and a sharp price spike in 2025. Market attention has focused on how constrained supply meets heavy spending by tech firms building AI infrastructure. Key facts: - The article mentions South Korea's SK Hynix and Samsung Electronics were up 11.5% and 15.9% year-to-date, and that Micron was 9% higher. - The article reports memory is a core component for chips used to train and run AI models, including those designed by Nvidia and AMD. - DRAM, a type of memory used in AI data centers, saw a large price spike in 2025, the article states. - Counterpoint Research is cited as expecting memory prices to rise about 40% through the second quarter of 2026. - Ben Barringer, head of technology research at Quilter Cheviot, is quoted saying the rally has been driven largely by the memory side due to strong AI workloads and relatively constrained supply, especially in high-bandwidth memory. - The article mentions analysts expect sizable profit increases in upcoming fourth-quarter reports, citing LSEG estimates for a large rise in Samsung's operating profit and big year-on-year earnings gains for Micron. Summary: The rally has concentrated gains in memory makers as AI demand and tight DRAM supply pushed prices higher, affecting market sentiment ahead of quarterly reports. Companies mentioned in the article are preparing fourth-quarter results in the coming week, and analyst estimates referenced in the piece anticipate significant profit growth for some memory firms.