Memory Shortage Boosts Sandisk — and May Kill Personal Computers

Core Insights - The AI boom has created a significant demand for computer memory, leading to a shortage and increased prices in the memory market [1][3] - Sandisk has emerged as a top performer in the S&P 500, with a total return of 559% in 2025 after separating from Western Digital [5] Industry Overview - Hyperscalers have significantly increased their demand for memory, causing memory manufacturers to struggle with supply [3] - Micron has reported being sold out for 2026, indicating a tight supply situation in the memory market [3] Company Performance - Sandisk's shares have risen by an additional 50% since the beginning of the year, following a remarkable performance in 2025 [5] - The company plans to increase capital expenditures by 18% in the current fiscal year, anticipating a 44% increase in revenue [5] Market Dynamics - The rising cost of memory has impacted other companies, such as Nintendo, which saw a 40% increase in memory costs for its Switch 2 hardware [3] - Sandisk's CEO emphasized the need for long-term supply agreements with hyperscalers to maintain a competitive edge [4]