Catenaa, Tuesday, January 13, 2025- Semiconductor stocks surged at the start of the year, led by major memory chip makers as artificial intelligence-related demand drives shortages and price increases.
South Korea’s Samsung Electronics and SK Hynix rose 15.9% and 11.5% year-to-date, while US-based Micron climbed 16.3%.
Memory chips, particularly dynamic random-access memory (DRAM), are critical for AI data centers used to train and operate large AI models.
Prices for these components spiked in 2025 and are expected to rise another 40% through mid-2026, according to Counterpoint Research.
The rally has extended to other semiconductor firms. Intel shares gained 7.6% and Taiwan Semiconductor Manufacturing Co. rose 10%.
Dutch chip equipment maker ASML increased 15.2% following an analyst upgrade that anticipates growing demand for machinery to produce advanced memory chips.
Analysts attribute the sector’s gains to sustained AI infrastructure investments, constrained supply, and expectations of a DRAM “supercycle.”
SK Hynix has indicated a potential high-bandwidth memory surge, reinforcing the outlook for structural growth rather than a temporary boost.
Investors expect strong fourth-quarter earnings from memory makers. Samsung’s operating profit is projected to rise 140% year-over-year, while Micron’s earnings per share could increase more than 400%.
The memory chip rally is also seen as positive for companies supplying equipment and services to support production expansion.
The surge highlights the central role of memory in AI development and broader semiconductor markets, with analysts noting continued optimism as firms prepare to expand production capacity amid persistent global demand.
