Memory Shortage Drives Sandisk’s Growth — and Could Spell the End for Personal Computers

The Impact of AI on Memory Supply

Artificial intelligence is creating unexpected challenges in the world of computer memory—not just by making us depend on technology, but by triggering a major shortage in memory infrastructure. This surge in demand has transformed what was once a low-profile, low-profit sector into a hot commodity. In 2025, Sandisk emerged as a standout performer on the S&P 500, thanks to this trend. Early signs suggest that this momentum could carry into 2026.

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Short-Term Memory Crunch

Major cloud providers have dramatically increased their demand for memory, putting immense pressure on manufacturers. Micron, for example, recently told CNBC that its supply for 2026 is already fully booked. Since memory typically represents about 20% of hardware expenses, this surge has driven up costs for everyone else. Nintendo, for instance, saw its stock tumble at the end of 2025 as the price of memory for its Switch 2 console jumped over 40% in the last quarter. Company president Shuntaro Furukawa noted that they are closely monitoring the situation, though he declined to speculate on potential price increases.

In February of last year, SanDisk separated from Western Digital just as the memory market began to surge. Now, the company faces the challenge of expanding production to meet demand while maintaining its competitive edge.

• After parting ways with Western Digital, Sandisk delivered a remarkable 559% total return in 2025, ranking among the top S&P 500 performers. The company’s shares have already climbed another 50% since the start of the new year.
• Despite this success, Sandisk executives told The Wall Street Journal that they remain cautious, aware of the memory industry’s history of volatile cycles. The company plans to boost capital spending by 18% this fiscal year, which ends in June, even as it anticipates a 44% increase in revenue.

“We have to ensure our investments are sustainable and avoid dramatic swings between profit and loss,” Sandisk CEO David Goeckeler explained to the WSJ. He also encouraged cloud providers to commit to longer-term supply agreements, ideally exceeding three months.

Changing Landscape for Personal Computing

PC Trends: The current memory shortage is causing concern among PC enthusiasts, who recall a bold forecast by Jeff Bezos at the 2024 New York Times DealBook Summit. Bezos suggested that, as large-scale cloud operators consume more resources, personal computers could become obsolete, with most users eventually renting computing power from the cloud. Given Amazon’s significant presence in cloud services, it’s easy to see why this prediction might also reflect the company’s aspirations.

This article was originally published by The Daily Upside. For more in-depth financial, economic, and market analysis, sign up for the free The Daily Upside newsletter.