Memory chip makers ride AI demand supercycle

Memory chip makers are at the centre of a multi-year supply crunch driven by relentless data centre buildouts competing for GPU and AI infrastructure. Wall Street strategists are now using the term 'supercycle' to describe the tailwind, with higher chip prices boosting gross margin projections well into 2027. Micron, Samsung and others reported soaring revenues and profit guidanceCompany-issued forecasts of future financial performance. this quarter, while stocks jumped 30% in a single week. CoreWeave CEO comments suggest Nvidia is doubling down on infrastructure partnerships and that IREN represents a critical test case for third-party GPU compute capacity. Yet the rapid ascent has revived memories of the dot-com bubble; some traders note that semiconductors are now 147% above their 200-week moving averageAverage price over a defined period; smooths noise to show trend. with weekly RSIRelative Strength Index - momentum oscillator on a 0-100 scale. at 85.7, matching extremes not seen since 2000. Goldman Sachs and Wells Fargo have upgraded price targets on mega-cap chip names. The consensus view is that AI memory demand is still in early innings, but sceptics warn that irrational exuberance and wave-like buying via ETFExchange-Traded Fund - a basket of securities trading like a single stock. inflows may be masking fundamental risks. Supply could normalize faster than expected if capex cycles turn, or if large cloud operators decide to build custom silicon. For now, the narrative is bullish: years of backlog and structural pricing power.