Heard on the Street: Are Memory Chip Makers Overheated After a Run‑Up in Prices and Demand?

Wed, 06 May 2026 16:12:00 +0200

The Wall Street Journal’s ‘Heard on the Street’ column on May 6, 2026, examines whether the recent surge in memory‑chip makers is sustainable, particularly as demand from AI and data centers continues to push prices higher. The piece notes that companies producing NAND flash and DRAM have enjoyed strong earnings and share‑price gains driven by tight supply and robust demand from hyperscalers and smartphone makers. Analysts, however, point to several risks: the long‑term cost of buying expensive memory components, the possibility of a supply glut if new plants come online, and the cyclical nature of memory markets, which have historically swung from scarcity to oversupply.

The column also highlights how higher memory prices are squeezing margins for device makers such as smartphone and PC manufacturers, even though they have so far passed most of the added cost to consumers. Some investors worry that memory stocks may be ahead of themselves, with valuations pricing in several more quar