AI growth changes the cycle for memory chip manufacturers
Memory chip makers say AI workloads are reshaping long-standing industry volatility, replacing sharp cyclical swings with sustained demand for large-scale data processing capacity across global infrastructure.
The growing demand for AI is reshaping the fortunes of the memory chip industry, according to leading manufacturers, who argue that the scale of AI investment is altering the sector’s typical boom-and-bust pattern.
The technology is creating more structural demand, rather than the sharp cyclical spikes that previously defined the market.
AI workloads depend heavily on robust memory systems, particularly as companies expand data centre capacity worldwide. Major chipmakers now expect steadier growth because AI models require vast data handling rather than one-off hardware surges.
Analysts suggest it could reduce the volatility that has often led to painful downturns for the industry.
Additionally, some reports claim that Japanese technology group Rakuten is prioritising low-cost AI development to improve profitability across its businesses.
Its AI leadership stresses the need to deploy systems that maximise margins instead of simply chasing capability for its own sake.
The developments underscore how AI is not only transforming software and services but also reshaping the economics of the hardware required to power them, from memory chips to cloud infrastructure on a global scale.
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