AI Giants Are Buying The World's Memory, And You're Getting The Bill - Micron Technology (NASDAQ:MU), SanDisk (NASDAQ:SNDK)

Core Insights - The demand for RAM has surged due to the needs of AI infrastructure, leading to higher prices and thinner margins across the tech industry [1][2] - Analyst firms are predicting significant price increases for DRAM, with Counterpoint Research forecasting 40-50% surges in Q4 2025 and Q1 2026, and TrendForce indicating that DRAM price increases of 50% or more are becoming the norm [3] - The economic landscape of computing is shifting, with AI giants able to absorb memory price spikes while smaller companies struggle, resulting in rising costs for laptops, SSDs, and other hardware [5][6] Supply Chain Dynamics - AI infrastructure requires substantial amounts of DRAM and high-bandwidth memory, and the slow expansion of memory manufacturers is exacerbating supply bottlenecks [2] - The memory demand is not limited to AI-specific applications but is affecting various segments, including PC RAM and NAND for SSDs [3] Market Reactions - Companies may need to adapt by repairing existing devices instead of purchasing new ones due to rising hardware costs, as indicated by Phison Electronics' CEO [4] - Smaller PC builders and niche hardware brands are facing significant challenges as they cannot absorb the same price increases as larger AI hyperscalers [5]