**Amazon Plans $220 Billion Investment in AI and Memory Chips in 2026**
Amazon (NASDAQ: AMZN) announced a significant increase in its capital expenditures for 2026, projecting spending of $220 billion, up from an initial estimate of $200 billion. During its Q2 earnings call, the company identified memory as a key driver of this increase. The surge in demand for memory chips is largely fueled by the ongoing AI arms race, highlighting a positive outlook for manufacturers like Micron (NASDAQ: MU).
Micron is expected to benefit from the increased spending on memory, with Wall Street analysts forecasting an 85% revenue growth for the company in the fiscal year ending August 2027, alongside a rise in earnings per share from $73.43 to $155.56. Despite current high memory prices due to insufficient supply, demand from AI hyperscalers remains robust, indicating that the memory chip market may see prolonged high prices and demand that could extend into 2028.
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