Micron vs. SanDisk: Which AI Memory Stock Benefits More From Nvidia's $279 Billion Warning?
Nvidia has issued a significant warning about the memory market, highlighting that rising prices and constrained supply are becoming strategic constraints for its operations. During an earnings call, CFO Colette Kress noted extreme pricing conditions in memory components, which have already exceeded internal forecasts and will continue to rise through next year. This is expected to impact Nvidia's gross margin negatively before price increases offset the pressure by fiscal 2027. Nvidia has committed $279 billion over five years for memory procurement, with a large portion allocated in the near term. The company is securing long-term supply of high bandwidth memory (HBM) and DRAM to support its Blackwell and Vera Rubin GPU architectures due to ongoing shortages and production challenges at foundries. Micron Technology benefits from both HBM and server DRAM demand, while SanDisk focuses on enterprise NAND flash for storage. Given the current bottlenecks in wafer capacity and conversion of factory lines to produce memory components like HBM, Micron appears more directly impacted by Nvidia's procurement strategy.
Topics: AI DRAM HBM Micron Technology NVIDIA Sandisk semiconductors