Memory Chips Surpass Half of Semiconductor Revenue, Driven by AI Demand
According to Susquehanna analyst Mehdi Hosseini, memory chips now account for between 50% and 55% of semiconductor industry revenue—up from a historical range of 20%-30%. This shift is largely driven by the growing demand for data center infrastructure supporting AI technologies. As cloud providers increase capital spending on DRAM and NAND to support advanced processors, memory has become the primary growth driver in semiconductors. Micron Technology (NASDAQ:MU) stands out as a major beneficiary of this trend, with its DRAM revenue rising 65.5% sequentially to $36 billion in Q2 2026 and capturing a 23.3% market share. The company has also begun high-volume shipments of HBM4 for AI applications. However, the memory sector remains cyclical, with new supply often leading to price declines over time. Chinese competitor CXMT is gaining ground in DRAM markets, raising concerns about long-term sustainability.
Topics: AI data centers DRAM Memory chips Micron Technology NAND NVIDIA