**Key Points: Rising Memory Prices Impact Big Tech’s Capital Expenditure Plans**
Major tech companies are feeling the financial effects of surging memory prices, prompting increased capital expenditure budgets. Apple announced a budget increase to counterbalance rising costs, while Tesla’s Elon Musk acknowledged Micron’s contributions amid “insane” pricing. Amazon raised its budget from $200 billion to $220 billion, predicting a compute capacity shortage lasting through 2027. Nvidia has committed $279 billion towards ensuring supply to meet a forecasted 70% revenue growth for fiscal 2028.
In the ongoing AI supercycle, memory makers like Micron and Sandisk are poised to benefit as demand for high-bandwidth memory, DRAM, and NAND remains significantly elevated. Four major CEOs explicitly noted the tight supply of memory in their recent earnings calls, identifying it as a critical bottleneck in their operations while struggling to manage shrinking gross margins.
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