GoKawiilThe artificial intelligence spending blitz has the memory industry dancing to a new tune.
Shares of Micron are up more than 370% over the past year, while Sandisk , which only listed in February of last year, is up more than 1100%.
For decades, memory stocks were stuck in a trader's game, a boom-bust-repeat pattern, but executives now say that AI has structurally broken the old cycle, and prices are showing no signs of coming down.
"We will continue to raise prices because the industry will continue to raise prices," HPE CEO Antonio Neri told CNBC. "There is not enough supply for demand."
An executive at hard drive maker Seagate told the South China Morning Post on Tuesday that memory price hikes are likely to become "the new normal" for the next few years.
South Korea's SK Hynix , one of the biggest producers of memory in the world, told CNBC that the entire memory industry is undergoing structural change.
"The company's customers, including hyperscalers, have increasingly preferred long-term contracts over the one-year agreements that were more common in the past," a spokesperson said in a statement.