DRAM stocks surge 345% to 660% as AI memory demand reshapes supply chains

The five best-performing non-US stocks in the first half of 2026 were all semiconductor and component makers riding a wave of AI-driven memory demand that shows no sign of peaking.

The AI trade has spread well beyond Nvidia and the Magnificent Seven. While those names dominate headlines, the biggest stock winners this year are the Asian companies supplying the hardware that powers artificial intelligence — memory chips, circuit board materials, capacitors, and semiconductor substrates.

"The current phase of AI development is overwhelmingly infrastructural," Allianz Research said in a recent report, as hyperscalers, governments, and corporations race to build AI computing capacity.

Samsung Electro-mechanics, a sister company of Samsung Electronics that specializes in semiconductor substrates and multilayer ceramic capacitors, saw its shares surge 660% in the first half of 2026. Japanese memory-chip maker Kioxia Holdings climbed about 631%, becoming Japan's most valuable company by market capitalization at roughly $300 billion. Hong Kong-listed Kingboard Laminates jumped 535%, while Taiwan's Yageo Corporation and Unimicron Technology rose 357% and 345%, respectively, according to MSCI's All Country World Investable Market Index.

The rally reflects a structural shift in the memory market. AI data centers require large volumes of high-bandwidth memory and high-spec storage, pulling supply away from consumer devices. As Samsung, SK Hynix, and Micron — which together account for nearly all global DRAM and NAND supply — prioritize server memory for its stronger profit margins, the consumer market faces tightening availability.

The memory shortage extends into 2028

Ethan Tan, a memory industry consultant and former Samsung China executive, told analysts at Jefferies Equity Research that RAM prices could jump 40% to 50% in the third quarter of 2026 compared with the previous quarter, followed by another 30% to 40% rise in the fourth quarter. The forecast is well beyond what Western investors and Jefferies had initially anticipated.

Tan estimates that modern semiconductor advances will raise supply by only 7% to 8% in 2026, far short of the pace of AI-driven demand. The shortage is expected to extend through 2027, with the first meaningful signs of relief projected for 2028, when prices could decline 15% to 20%.

Chinese memory suppliers such as CXMT are not expected to become a major stabilizing force in the near term. Their production remains limited by restricted access to advanced fabrication tools, including EUV lithography machines, preventing domestic producers from making next-generation memory chips independently.

Goldman sees more upside in North Asian memory stocks

"We think the semiconductor memory supercycle is still not fully priced in the North Asian markets of Korea and Taiwan," Goldman Sachs analysts wrote in a note on emerging markets this week. The bank expects South Korea and Taiwan to post the strongest earnings growth through 2027, though retail trading and shifting sentiment around AI could drive further market volatility.

The supply-demand imbalance has direct consequences for consumers. Higher memory costs eventually flow into the final price of laptops, desktops, phones, and game consoles. Apple, Sony, and Microsoft are among the companies affected by the rising hardware bill, according to industry sources. Custom PC builders face a double hit as RAM rises alongside overall assembly costs.

For investors, the question is whether DRAM stocks have run too far too fast. Samsung Electro-mechanics trades at elevated multiples after its 660% surge, and Kioxia's $300 billion valuation reflects aggressive growth assumptions. But with Goldman Sachs calling the supercycle underpriced and supply growth constrained through at least 2027, the structural demand thesis remains intact — even if volatility in the near term is all but guaranteed.

This article is for informational purposes only and does not constitute investment advice.