An AI memory 'supercyle' is here. These 4 stocks are poised to be the big winners.

• Memory chip makers have seen their stocks soar.
• Demand from AI data centers has outweighed supply, creating an "unprecedented" shortage.
• Analysts say the dynamic supports an AI-fueled memory "supercycle."

Memory stocks extended a strong rally on Monday, propelling a sustained streak of gains amid predictions of an AI-driven memory shortage.

Earnings from Sandisk, Micron, Seagate Technology, and Western Digital underscored what tech intelligence firm IDC calls an "unprecedented memory chip shortage." Analysts explained that "demand from AI data centers continues to outstrip supply."

The data center-fueled supply constraint was a key focus of Sandisk's most recent earnings, with management indicating they expect to "continue to see customer demand well above supply beyond calendar year 2026." The company reported 64% quarter-over-quarter rise in data center sales.

William Blair analysts see "strong demand and limited supply driving upcycle into 2027" in what they call a "supercycle in full force." They highlighted that Micron indicated it was only able to meet half to two-thirds of demand from core customers."

Mizuho analysts flagged four stocks as positioned to gain amid the scramble for storage fueled by the AI boom: Sandisk, Micron, Western Digital, and Seagate Technology.

The analysts, who hold an Outperform rating on the four stocks, highlight "pricing tailwinds in legacy DRAM/NAND markets." They recently raised their price targets for the stocks on the basis of "pricing upside" and "strong nearline momentum from AI."

Here were the moves in these stocks during Monday's trading session:

Sandisk: +16%

Western Digital: +10%

Micron: +6%

Seagate Technology: +6%

It's also not only data centers being hit by the memory-chip shortages. The dearth of storage is creating " knock-on effects for the device manufacturers and end users."

Apple is one such manufacturer. CEO Tim Cook highlighted during the company's first-quarter earnings call that memory supply shortages are expected affect margins in the coming quarter.

"Beyond Q2, but we do continue to see market pricing for memory increasing significantly," the CEO said, adding, "we are in a supply chase mode to meet the very high levels of customer demand."

Cook said Apple "will look at a range of options" to deal with the supply constraints, which Bank of America analysts said could relieve some pressure.

"Apart from all the supply chain levers, we see the iPhone as a relatively price inelastic product, where a $50-100 price increase would not materially shiſt the demand curve but would absorb most of the memory related margin pressure," the bank wrote late last week.