Shares of memory chip makers Micron Technology Inc. and Sandisk Corporation rose sharply after analysts pointed to an ongoing global shortage of DRAM and NAND driven by the artificial intelligence boom.

Micron shares increased by five point five zero percent, while Sandisk rose by six point two one percent as sector indicators strengthened following a summer correction.

The recent contract price for DRAM memory has increased roughly three and a half times since the beginning of the year, rising ninety to ninety-five percent in the first quarter alone. This provided Micron with quarterly revenue of forty-one point five billion dollars and enabled a sales forecast of fifty billion dollars for the upcoming quarter.

The memory market has overcome investor doubts regarding the end of the growth cycle. Despite manufacturers’ efforts to scale production, new capacity from Micron, SK Hynix, and Samsung will not meaningfully impact market supply before late twenty twenty-seven.