DRAM and to a lesser degree storage are notorious for their feast and famine cycles

(Well that and collusion)

All of the capital intensive businesses face this issue. Chemicals, Shipping, Semiconductors etc.

You get market signals that the demand is there, you acquire the necessary capital, you spend 5 years to build capacity, but guess what, 5 other market players did the same thing. So now you are doomed, because the market is flooded and you have low cash flow since you need to drop prices to compete for pennies.

Now you cannot find capital, you don't invest, but guess what, neither your competitors did. So now the demand is higher than the supply. Your price per unit sold skyrocketed, but you don't have enough capacity!

Rinse and repeat.

Capitalists claim that this is optimal.