The Motley Fool argues that AI demand may make Micron and Sandisk less cyclical for years. Nvidia estimates the five largest AI hyperscalers will spend $1.3 trillion on data centers next year, up from $800 billion the year before.
The article says AI hyperscaler demand has absorbed all available memory-chip production capacity and more, pushing prices higher and leaving some companies with orders stretching multiple years. Micron is building multiple facilities that will not come online until mid-2027 or 2028; Sandisk is investing $31 billion in a new facility. The article says even Micron’s added capacity may not meet current demand.
Nvidia also estimates data-center capital expenditures at $3 trillion to $4 trillion by 2030. The author argues that continued demand could keep memory makers’ factories highly utilized and margins elevated, but says it is uncertain how much AI-driven business will be sustainable over the long term.
