Micron Technology and Sandisk have fallen 25% to 42% from their 2026 highs despite a memory chip shortage that is driving up prices and forcing major AI companies to raise capital spending. Amazon raised its 2026 capital expenditure guidance from $200 billion to $220 billion due to rising memory chip costs, while Alphabet increased its capex by a similar amount and SpaceX CEO Elon Musk said memory chip capacity is growing only about 20% per year against a 200% demand increase. Wall Street expects Sandisk to deliver 140% revenue growth in fiscal 2027 with EPS rising from $70.88 to $212.15, and Micron to post 85% growth with EPS climbing from $73.39 to $154.89. New memory chip facilities are not expected to come online until late 2027 or 2028, which could keep prices elevated and benefit both companies.
