Micron Technology (NASDAQ:MU) climbed 5% and SanDisk Corporation (NASDAQ:SNDK) surged 6.6% on Friday after reports indicated that Samsung Electronics has sharply raised memory chip prices in response to deepening global supply shortages.
Reuters, citing individuals familiar with the situation, reported that Samsung — the world’s largest producer of memory chips — lifted prices on several DRAM products by up to 60% in November compared with September. The increases come as demand accelerates, driven by the AI-driven data center boom that has tightened supply across the semiconductor industry.
Contract pricing for 32GB DDR5 modules soared to $239 in November, up from $149 in September, marking a 60% jump. Prices for 16GB and 128GB DDR5 chips rose about 50%, while 64GB and 96GB units saw increases of more than 30%.
The South Korean chipmaker also postponed the release of official October pricing for its supply contracts, leaving server manufacturers and hyperscale data center operators scrambling for inventory in what industry sources describe as an increasingly severe shortage. Many customers are now accepting reduced shipment volumes while paying steep premiums to secure whatever capacity is available.
DDR memory chips — essential for handling rapid data processing in servers, PCs, and countless connected devices — sit at the heart of modern electronics. The tightening supply environment is expected to push costs higher not only for data center infrastructure but also for consumer hardware such as laptops and smartphones.
Samsung’s aggressive price adjustments have boosted sentiment toward competitors like Micron and SanDisk, with investors betting that tighter market conditions will lift pricing power and bolster profitability across the memory sector.