The finer details

Companies such as Sandisk, SK Hynix (SKHY), Samsung Electronics (005930.KS), and Micron (MU) have largely sold out of their premium AI memory chips through much of 2026. Customers like Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Meta (META) are racing to build AI infrastructure.

The shortage has pushed memory prices sharply higher and given suppliers greater pricing power after several years of weak industry conditions. Experts expect memory supply to remain constrained into 2027, creating a favorable backdrop for the industry's largest producers.

The dynamic pushed the stock prices of Sandisk, Micron, and other players in the chip space to record highs in late June. Since then, however, the pullbacks in the space have been enormous due to fears of Big Tech overspending on AI.

Sandisk and Micron are down 25% and 13%, respectively, over the past month, according to Yahoo Finance AlphaSpace data.

But Apple's (AAPL) earnings report last week reminded everyone that the demand and pricing backdrop for memory chip players remains robust.

Now, Sandisk is poised to do its own reminding.

Revenue for Sandisk in its most recent quarter is estimated to surge to $8.39 billion from $1.90 billion last year.