Last Friday witnessed a significant surge in the memory chip sector within the U.S. stock market, drawing considerable attention from investors. Notable industry players including SanDisk experienced an impressive jump of over 11%, while Micron Technology saw nearly a 6% increase. Additionally, both Seagate Technology and Western Digital recorded intraday gains surpassing 6%.
Insiders from the storage supply chain have reported a tightening scenario as certain manufacturers have suspended quotations for some DRAM and Flash products. It has been highlighted that even when prices are made available, their validity is notably brief—often limited to just one price per day. This evolving situation has significantly influenced the domestic supply chain. A representative from Jiangbo Long’s securities department mentioned that existing inventory levels, coupled with upstream price hikes, are set to enhance the company’s gross margin. Another spokesperson from Puyan Stock indicated that supply constraints have emerged since the fourth quarter, and the company aims to explore potential price increases with downstream clients.
The growing development of large AI models is also propelling demand for infrastructure, particularly GPUs, across the sector. Morgan Stanley recently forecast that tech giants are projected to invest around $400 billion in AI infrastructure this year, contributing to a soaring demand for memory chips. According to the Yole Group, revenue from High Bandwidth Memory (HBM) products—primarily utilized in GPU production—is anticipated to nearly double by 2025, reaching approximately $34 billion. The HBM market is expected to maintain a compound annual growth rate (CAGR) of 33% until 2030, at which point its revenue could account for more than 50% of the total DRAM market revenue.
Given that HBM demands over three times the wafer capacity of standard DRAM, this limited overall capacity nudges memory manufacturers to pivot toward higher-margin HBM and DDR5 production. Consequently, older products such as DDR4 and LPDDR4X face strategic production cuts, generating supply shortages and price hikes which are cascading through the broader memory market.
As per the Cailian Press thematic database, several related listed companies are capitalizing on these trends. Jiangbo Long’s enterprise-level storage solutions have garnered widespread acclaim from key clients across various industries. IDC data indicates that in the 2024 rankings for total capacities of enterprise-level SATA SSDs in China, Jiangbo Long holds the third position overall, and it ranks first among domestic brands. Anji Technology has also made strides in the sector, with its chemical mechanical polishing slurries and functional wet electronic chemicals being effectively utilized in memory chip production. Yangtze Memory Technologies Co., Ltd. stands out as a significant customer for the company.
