Major memory suppliers including Samsung, SK Hynix and Micron Technology are securing capacity through 2027 to meet soaring AI data centre demand, signalling a disruptive shift in the global memory market and impacting company valuations and investor behaviour.
Artificial intelligence is tightening an already stretched memory market, with major suppliers including Samsung, SK Hynix and Micron Technology said to have booked much of their 2027 capacity far ahead of schedule. The rush is being driven by demand from AI data centres for DRAM and high-bandwidth memory, or HBM, which are increasingly being prioritised over chips used in personal computers, smartphones and other consumer devices.
That shift matters for Micron because the company is one of the largest producers of memory and storage chips and relies heavily on DRAM sales. GuruFocus reported that the stock was trading at $877.57, well above its GF Value estimate of $564.35, implying a large premium to its assessed intrinsic worth. The same analysis said Micron’s GF Score remained strong at 81 out of 100, supported by high marks for financial strength, profitability and growth, even as valuation and momentum lagged.
Other valuation work points in the same direction. An assessment from Fair Value Calculator placed Micron’s fair value far below its market price and described the company as profitable, low in debt and a strong cash generator, while AAII highlighted elevated price-to-sales, price-to-earnings and price-to-book multiples relative to industry medians. Another model from EvidInvest also suggested meaningful downside from prevailing levels, though it warned that such estimates are highly uncertain and should be treated as broad guides rather than precise forecasts.
Investor behaviour is split. GuruFocus said 21 prominent investors hold the shares, with more adding than trimming positions in recent quarters. At the same time, insider activity has been weak, with no buying and $169.4 million in shares sold over the past three months. SK Hynix’s reported plan to spend about $38.3 billion to expand production in South Korea underlines how aggressively chipmakers are responding to the AI-led supply squeeze, and why memory pricing and capacity remain key variables for Micron’s outlook.
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