These 2 Hardware Leaders Will Cash In on the Next Data Center Memory Crunch
The memory chip crunch is far from over.
Overview
The supply crunch in the memory chip industry is becoming quite annoying. Whether you're a consumer looking to buy a new laptop or phone, or a business that wants to obtain cloud computing hardware, it has caused prices on these units to skyrocket. In fact, one of the artificial intelligence (AI) hyperscalers, Amazon (NASDAQ: AMZN), bumped its capital expenditures from $200 billion to $220 billion solely based on higher memory prices. That's not an insignificant increase, and there are only a handful of companies that actually benefit from soaring memory chip prices.
I don't think we're out of the woods yet in terms of memory chip availability, and Sandisk (NASDAQ: SNDK) and Micron (NASDAQ: MU) are primed to benefit as a result. Despite these two having a great start to the year, I still think they're incredible buys right now, as it will be some time before these stocks take a hit due to the cyclical nature of the business.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.