Memory chips, prices and AI infrastructure are now tightly linked as the global semiconductor market enters what industry leaders, including Synopsys CEO describe as a prolonged supply squeeze. The increase in investment into building AI data centers using high-bandwidth memory (HBM) has created an imbalance of demand compared to supply, which has resulted in the price of HBMs exceeding expectations for the other industries that require this memory for their products. Synopsys sees prices rise as capacity lags demand According to Sassine Ghazi, CEO of Synopsys, a manufacturer of semiconductor design software, it is no longer a temporary situation; this is an ongoing change. “Most of the available memory is now going directly into the AI system infrastructure, which means that all the other types of products using HBM as required with memory, are out of luck,” he stated. Memory chips power many of today’s smartphones, laptops (notebooks), and servers; however, the demand for memory from cloud computing and high-level exponentiation of workloads associated with AI is much greater than the manufacturers’ ability to meet the increased demand. Currently, industry leaders such as Samsung , SK Hynix, and Micron are working diligently to increase the production of HBM memory chips, with new production capacity being built over the next several years. Both leaders believe that the shortage of supplies will continue to affect the market for many years, likely extending into 2026/2027. Ghazi notes, “This is an extremely lucrative time for companies that manufacture memory.” He also cites strong pricing power across the entire industry. The global AI infrastructure push is now expected to pass $500 billion this year. While megacap stocks stalled, storage-linked names ripped higher, turning an overlooked market into one of the loudest trades on the board. Chip shortages push prices and stocks higher SanDisk shares have nearly doubled since January and climbed almost 1,100% since August last year. Micron and Western Digital tripled in that same window. SK Hynix did the same. The rally delivered billions in gains to hedge funds that moved early, including DE Shaw and Arrowstreet Capital. Historically, prices for memory devices have fluctuated between periods of excess supply and shortage. Now, analysts agree that the industry is experiencing an ongoing, longer-term “Super Cycle,” driven by ongoing structural demand from the AI market, as opposed to shorter-term fluctuations seen in previous years. Lenovo’s chief financial officer Winston Cheng agrees. “We anticipate that prices for memory will continue to increase as demand continues to stay relatively high while supply is not keeping pace quickly enough,” Cheng noted. Consumers face higher device costs The recent rise in memory prices is starting to show up in the manufacturing of electronic products. According to Cheng, Lenovo is prepared to raise prices to reflect the increase in cost. “It is a cyclical process, where prices adjust as they go up,” he stated. As reported by Cryptopolitan earlier, Micron says the world is heading into a serious memory chip shortage that’s not going to fix itself anytime soon. Now Micron is the company that makes memory for Nvidia and so many other major AI companies, it also just broke ground on a $100 billion chip factory near New York, so a prediction like this from it definitely deserves our attention. Xiaomi, a Chinese manufacturer of mobile devices, has warned that it anticipates that the prices of its devices may increase by 2026. According to Ghazi, however, the effects of increased prices have already started to occur. “We are already seeing increases in price,” he said. Cheng stated that the impact of increased prices on lower-cost devices will be felt first; however, the market for upgradeable PCs is still strong due to the increase in Windows 11 adoption. “The replacement cycle is definitely in place,” he said. “Still, the affordability of devices at the entry level will be tested.” The smartest crypto minds already read our newsletter. Want in? Join them .
