Memory Stocks: The AI Gold Rush

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So, everyone’s talking about AI, right? It’s the new kale. Except instead of making you feel vaguely virtuous, it’s making memory stocks look… good. Like, really good. For years, the memory market – DRAM and NAND, if you want to sound important at cocktail parties – was about as exciting as beige paint. Cyclical, predictable, a good night’s sleep. But now? It’s a supercycle, a feeding frenzy, and honestly, it’s kind of a beautiful disaster. It’s like watching a bunch of very expensive hamsters running on very expensive wheels.

The Great Memory Squeeze

Let’s break it down. DRAM is your short-term memory – what your computer uses to, you know, compute. NAND is long-term storage, like the digital equivalent of your aunt Mildred’s photo albums. Both are currently experiencing a supply situation so tight, it makes getting Hamilton tickets look easy. And it’s all because of AI’s insatiable appetite.

See, AI chips aren’t just magically brilliant; they need a special type of DRAM called High-Bandwidth Memory, or HBM. Think of it as the chip’s espresso shot. It makes everything run faster, smoother, and with a slightly jittery energy. GPUs and other AI components are practically mainlining this stuff. The problem? HBM uses a lot more silicon than your standard DRAM. Like, three to four times the capacity. It’s a logistical nightmare, and frankly, it’s hilarious to watch the industry scramble.

Flash memory, the NAND stuff, is also in a bind. A couple of years ago, everyone was overproducing it, prices crashed, and it was a whole mess. Memory companies, being the sensible sorts they are, slowed down production. Then AI came along and decided it needed massive amounts of high-performance solid-state drives to store all its training data. Suddenly, everyone’s realizing they maybe shouldn’t have put the brakes on quite so hard. It’s like accidentally canceling your streaming subscription right before the new season of your favorite show drops.

Two companies that are, shall we say, particularly well-positioned in this chaos are Micron Technology (MU 9.55%) and Sandisk (SNDK 16.06%). They’re basically the guys selling the espresso and the photo albums, and right now, business is booming.

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Micron: The HBM Hustle

Micron is a leader in both HBM and DRAM, though they get about 20% of their revenue from NAND. Their HBM production is completely sold out for the year. Completely. It’s like trying to find a decent avocado at the grocery store on a Sunday. They’re expecting demand to grow 40% over the next few years. 40%! That’s a lot of espresso.

DRAM prices are climbing, revenue is up, and margins are expanding. Last quarter, their gross margin jumped from 38.4% to 56%. That’s the kind of margin that makes accountants weep with joy. They’re investing in capacity, but frankly, it’s like trying to build a bigger highway while everyone is already speeding. Expect things to stay tight for a while.

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Sandisk: The Flash Forward

Sandisk is a pure-play way to invest in the NAND environment. Like Micron, their revenue and margins are soaring. Last quarter, revenue jumped 76%, but earnings per share climbed fivefold. Fivefold! That’s the kind of growth that makes venture capitalists start planning their yachts.

With demand for NAND increasing and supply remaining tight, especially as memory companies focus on HBM, Sandisk has a lot of growth ahead of it. It’s a good time to be in the memory business, unless you’re an accountant trying to keep track of all the profits. Which, honestly, sounds like a nightmare.

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2026-02-05 01:23