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Introduction
Explosive AI demand has driven a shortage in memory chips and, despite breaking ground on new memory fabs (fabrication plants), one shouldn't expect to see meaningful output impacting memory chip supply until at least 2028 with some experts claiming that it will the massive appetite for AI chips, driven by the infrastructure build-out, will cause a pricing apocalypse that will last a decade. As such, according to an article in the WSJ, this exponential rise in memory is all but guaranteed to hit the automotive sector, TVs, and consumer electronics, among many others and memory multiplying in price, implies a cost that manufacturers will be passing on to its customers, assuming there is even any memory available to make the devices.
Types Of Memory Chips
There are two basic memory types: Random access memory (RAM) that stores data that's currently being used by the processor, while read-only memory (ROM) is for more permanent storage. Within these categories, there are plenty of subtypes.
- One such RAM sub-type is dynamic random access memory (DRAM). A DRAM chip consists of a series of simple memory cells, each containing just one capacitor. A charged capacitor indicates a one, and a discharged capacitor indicates a zero. Because each memory cell is so simple, DRAM is cheap to produce and can hold large amounts of memory in a single chip. However, capacitors leak charge quickly, so DRAM needs to be recharged every few milliseconds, making it very energy-hungry.
- AI computations need fast access to more data than a single DRAM wafer can allow due to their massive data needs and high processor speeds. Luckily, by stacking DRAM wafers vertically and adding some extra electrical connections, you can create high bandwidth memory (HBM), which delivers incredible data retrieval speed for less power. Source
- Only three companies currently manufacture almost the entire global supply of DRAM and HBM: SK hynix (000660.KS) and Samsung Electronics (005930),both of which trade on the Korea Exchange and Micron Technology (MU) which trades on the Nasdaq..
What Is High Bandwidth Memory?
High Bandwidth Memory (HBM), in simple terms, is a certain number of conventional DRAM (direct random-access memory) chips stacked together to achieve greater performance and efficiency. It was first developed by SK Hynix a decade ago for use in video games and only recently came into its own with the advent of generative AI, which requires components that can handle massive amounts of data without lag time.
What Is HBM’s Market Size and Expected Growth Rate?
According to Mordor Intelligence, the HBM market is currently US$3.17B and is forecast to grow at a CAGR of 25.86% between now and 2030 to US$10.02B..
What is HBM’s Global Market Share By Company?
For now, SK Hynix is the clear leader, with more than half the global market share for HBM; but compatriot Samsung Electronics and Micron Technology of the U.S. are racing to catch up, competing not only on technology but on price and other conditions.
Industry tracker Counterpoint Research recently estimated SK hynix will account for 57 percent of the global HBM4 (6th generation) market in 2026, followed by Samsung Electronics Co. with 22 percent and Micron Technology Inc. with 21 percent. Source
Micron's Stock Performance In 2025 and YTD
Both SK hynix and Micron are pure-play competitors while Samsung, in addition to being a leading provider of memory chips, also provides semiconductor foundry services and smartphones. Only Micron trades on an American stock exchange so it is not possible to provide a comparison of their stock performances. That being said, Micron stock went UP an amazing 239% in 2025 and is currently UP 38% YTD.
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