HBM

Analysts warn the global smartphone market is on track for its sharpest decline on record in 2026, as AI-driven data center demand for HBM memory chips squeezes supply for consumer devices made by Samsung, Apple, and Google.

Google DeepMind CEO Demis Hassabis told CNBC that the global memory chip supply chain is severely constrained, limiting AI model deployment and research, even for Google despite its proprietary TPU infrastructure.

Micron's market cap surges 313% as AI data centers consume 70% of memory chip production, with DRAM prices expected to rise 70-100% in 2026 amid persistent shortages.

AI data center demand drives critical memory chip shortage, DRAM prices up 80-90%, supply-demand imbalance expected to persist through 2028.

While Nvidia dominates the AI chip market, Wall Street analyst Beth Kindig has named Micron Technology her top AI chip stock for 2026. The company's critical high-bandwidth memory (HBM) is becoming essential for handling the massive data demands of AI workloads.