Apple CEO Tim Cook described a '100-year flood' in memory chip pricing during the company's latest quarterly earnings call, signaling a major disruption that is forcing Apple to raise prices to protect margins. The surge is benefiting memory chip makers, with Sandisk reporting a 372% year-over-year revenue jump in its fiscal fourth quarter and Micron indicating tight market conditions will persist beyond 2027. Sandisk trades at 6.3 times forward earnings and Micron at 5.7 times, both seen as cheap given the ongoing demand from data centers and AI hyperscalers. Amazon also raised its 2026 capital expenditure forecast by $20 billion to $220 billion, citing rising memory chip costs.
