Global chipmakers see rising demand for high-bandwidth memory amid AI data center investments, boosting both prices and earnings
The explosive growth of artificial intelligence (AI) is breathing new life into the memory semiconductor market.
High-bandwidth memory (HBM), optimized for AI computing, is experiencing a surge in demand as global tech giants ramp up investments in large-scale data centers — triggering a welcome shift toward price recovery and earnings improvement across the industry.
According to Reuters on the 11th (local time), Micron Technology, a leading player in the HBM market alongside SK hynix and Samsung Electronics, has sharply raised its guidance for the fourth quarter of its fiscal year. Revenue projections were increased from $10.4–11.0 billion to $11.1–11.3 billion, while adjusted earnings per share (EPS) were raised from $2.35–2.65 to $2.78–2.92. The company explained that the upward revision primarily reflects improved DRAM pricing.
Sumit Sadana, Micron’s Chief Business Officer (CBO), said, “Pricing trends remain solid, and we’ve achieved strong success in implementing price increases,” adding that “the market environment has shifted significantly compared to the past.”
Jacob Bourne, an analyst at market research firm eMarketer, noted that “with production capacity for HBM limited and AI demand remaining strong, Micron is now able to set higher prices,” marking a sharp departure from the low-margin environment that memory makers have endured for years.
Micron’s shares rose about 3% on the day. The company supplies memory chips equipped with HBM to GPU giants such as Nvidia and AMD.
Political factors could also play a role. U.S. President Donald Trump has announced plans for a 100% tariff on all semiconductor products, though companies that commit to and follow through on building manufacturing facilities in the U.S. are expected to receive exemptions. In June, Micron announced it would expand its U.S. investment by $30 billion to reach a total of $200 billion.
Korean chipmakers are also moving swiftly. SK hynix stated during its Q2 earnings call on July 24 that while product shipments in the first half exceeded earlier expectations and a slowdown in the second half is possible, the likelihood of sharp market volatility remains low. The company emphasized that some proactive investment is needed to meet next year’s HBM demand, and that 2024 capital expenditure will exceed prior plans.
Industry insiders say the explosive growth of the AI server market is not a short-term trend but a structural shift, positioning high-performance memory such as HBM as a central growth driver for the semiconductor sector in the years ahead.