Memory Chip Market in Turmoil as AI Demand Shifts Supply

The memory chip market is experiencing a supply war due to a shift in demand from AI data centers. These centers are pulling wafer capacity away from smartphones, causing a shortage that could reshape device prices for years to come.

Samsung, SK Hynix, and Micron together supply the bulk of the world's memory. However, Apple is struggling to adapt to this new market dynamic, as it relies heavily on these suppliers but lacks the flexibility to build its own factories quickly.

SK Hynix stock jumped 7% to $188.52 in Tuesday morning trading, while Micron Technology shares rose 0.4% to $1,020.60. In contrast, Apple's stock slipped 1% to $316.28.