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Memory chips, prices and AI infrastructure are now tightly linked as the global semiconductor market enters what industry leaders, including Synopsys CEO describe as a prolonged supply squeeze. The increase in investment into building AI data centers using high-bandwidth memory (HBM) has created an imbalance of demand compared to supply, which has resulted in the price of HBMs exceeding expectations for the other industries that require this memory for their products. Synopsys sees prices rise as capacity lags demand According to Sassine Ghazi, CEO of Synopsys, a manufacturer of semiconductor design software, it is no longer a temporary situation; this is an ongoing change. “Most of the available memory is now going directly into the AI system infrastructure, which means that all the other types of products using HBM as required with memory, are out of luck,” he stated. Memory chips power many of today’s smartphones, laptops (notebooks), and servers; however, the demand for memory from cloud computing and high-level exponentiation of workloads associated with AI is much greater than the manufacturers’ ability to meet the increased demand. Currently, industry leaders such as Samsung, SK Hynix, and Micron are working diligently to increase the production of HBM memory chips, with new production capacity being built over the next several years. Both leaders believe that the shortage of supplies will continue to affect the market for many years, likely extending into 2026/2027. Ghazi notes, “This is an extremely lucrative time for companies that manufacture memory.” He also cites strong pricing power across the entire industry. The global AI infrastructure push is now expected to pass $500 billion this year. While megacap stocks stalled, storage-linked names ripped higher, turning an overlooked market into one of the loudest trades on the board. Chip shortages push prices and stocks higher SanDisk shares have nearly…

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Filed under: News - @ January 26, 2026 5:29 pm