Mapping the Global AI Memory and HBM Supply Chain

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.

Generative AI is driving demand for data-center computing power and memory bandwidth. HBM, which can feed data to GPUs at high speed, has become a strategic component in AI servers. The world's three largest memory manufacturers are shifting resources toward HBM, creating supply gaps in conventional DRAM and NAND flash and opening new markets for Taiwanese companies.

ADATA, Phison, Nanya Technology and Winbond Electronics are moving to fill those gaps through their respective strengths in inventory, controller chips, DRAM processes and specialty memory. They are also pursuing storage demand from edge AI. Related reports did not disclose investment amounts, shipment volumes or specific dates, but said demand for AI computing power had exceeded earlier expectations and that the global imbalance between memory supply and demand persisted.