Memory Maker Kioxia Names New CEO in Midst of AI Chip Boom

The semiconductor memory market is experiencing a surge in demand driven by the rapid expansion of artificial intelligence infrastructure. This trend is reflected in the performance of major chipmakers, including SK Hynix, which reported a significant increase in revenue and profit in the December quarter of 2025. The company attributed its strong performance to high demand for high-bandwidth memory used in AI data centers.

In related news, Kioxia has named a new CEO as part of its strategic response to the AI-driven memory boom. The change comes as the memory industry faces a prolonged shortage of DRAM and NAND chips, which has allowed manufacturers to raise prices and boost margins according to a market analysis.

The broader semiconductor industry is also showing signs of momentum. Texas Instruments and Seagate Technology both reported strong earnings in premarket trading, reflecting the ongoing demand for chips used in data centers and AI applications.

Why Is the Memory Chip Market Expanding So Quickly?

The expansion of AI infrastructure is a key driver of the current memory chip boom. Companies across the tech sector are investing heavily in AI capabilities, which require large quantities of high-bandwidth memory for training and inference operations. This has led to a surge in demand for DRAM and NAND chips, particularly from cloud providers and hyperscalers as research shows.

Memory pricing has risen sharply as a result of this demand. Analysts at Omdia estimate that the average selling price of DRAM could increase by as much as 120% in 2026, while NAND prices could rise by 90%. These trends are supported by forecasts from leading research firms, which predict that the global semiconductor market will exceed $1 trillion in revenue for the first time in 2026.

How Are Investors Responding to the Market Shift?

Investor sentiment appears to be shifting in favor of memory chipmakers. SK Hynix's shares have surged more than 7% in recent trading sessions, reflecting confidence in the company's ability to meet the growing demand for AI-related memory products.

Other semiconductor firms are also benefiting from the AI-driven expansion. Texas Instruments reported a 7.1% gain in premarket trading after it issued an upbeat quarterly forecast, citing strong demand for analog chips used in data centers. Meanwhile, Seagate Technology's stock rose 9.4% on the back of better-than-expected earnings and increased demand for storage solutions.

The market for AI-related memory is also attracting strategic moves from industry players. SK Hynix has announced plans to expand its US operations through a new AI data center solutions firm, which will be backed by $10 billion in capital. This move underscores the company's commitment to capturing a larger share of the growing AI infrastructure market.