Samsung Securities Analyst Calls Memory-Stock Selloff a Cyclical Correction, With AI Demand Still Key
The memory industry is highly exposed to supply-and-demand cycles, and declines in DRAM prices and related stocks are often seen as signals of a downturn. Samsung Securities analyst Lee Jong-wook views the latest selloff as a correction within the cycle. He says infrastructure demand from AI companies such as OpenAI and Anthropic is a better gauge of the memory market’s direction than short-term price swings.
Lee recently said falling DRAM prices and the sharp drop in memory stocks did not mean the cycle had peaked. Investment in AI infrastructure is still accelerating, leaving room for further demand growth. He recommended continuing to track OpenAI’s and Anthropic’s business performance and capital-spending plans. As of July 20, 2026, available information did not disclose any investment amount or the report’s exact publication date.
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The history behind this eventAI Demand Fuels Memory-Chip Stock Rally, Analysts Warn of Boom-Bust Risk
Generative AI has expanded rapidly since ChatGPT launched in December 2022, fueling demand for high-bandwidth memory and expectations of supply shortages. That has positioned companies including Samsung Electronics and SK hynix as major beneficiaries of AI infrastructure spending. But memory chips trade much like commodities, leaving prices and profits vulnerable to sharp reversals when supply and demand fall out of balance and raising questions about whether the stock rally can last.
As of May 25, 2026, Samsung Electronics and SK hynix had risen 114% and 186%, respectively, since the start of the year, while Micron had gained 141%. BlueBox Asset Management warned of a boom-bust cycle, while Standard Chartered advised taking some profits. New plants are expected to begin mass production from late 2027 to 2028. Nomura, meanwhile, set 12-month price targets of 4 million won for SK hynix and 590,000 won for Samsung.
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