Apple, Samsung warn of memory shortage in results: these stocks will benefit

The rapid expansion of artificial intelligence infrastructure is running into a critical constraint, as shortages in memory chips and storage drives push costs higher.

This also complicates the supply chains for major technology companies.

Quarterly results from hyperscalers such as Alphabet Inc. and Microsoft Corporation highlighted strong cloud growth alongside surging capital expenditures, which are expected to exceed $1 trillion by the end of next year.

A significant portion of that spending is being driven by rising prices for memory components, which are becoming a central bottleneck in AI deployment.

Companies such as Apple and Samsung also warn of tightening memory supply in their latest earnings updates.

Memory shortage deepens as demand accelerates

Chipmakers warn that supply constraints are likely to intensify in the coming years.

Samsung Electronics executive vice president of memory Jaejune Kim said demand for memory chips is outpacing supply at an unprecedented rate.

The imbalance is being driven by hyperscalers rapidly scaling infrastructure to support AI workloads, increasing demand for DRAM and NAND memory, as well as storage solutions such as hard disk drives.

Rising costs hit tech giants and supply chains

Technology companies are already feeling the impact of higher memory prices.

Apple CEO Tim Cook acknowledged the growing pressure during Apple Inc.’s earnings call.

“We believe memory costs will drive an increasing impact on our business,” Cook said.

Similarly, Sundar Pichai pointed to ongoing supply chain challenges.

“Obviously, we are working through a complicated supply chain environment,” he said.

Alphabet reported capital expenditures of $35.7 billion in the first quarter, with CFO Anat Ashkenazi noting that the “overwhelming majority of this spend in technical infrastructure to support … AI opportunities.”

The strain is also affecting hardware availability.

Meta Platforms has reportedly extended the lifespan of older servers due to difficulties in sourcing new equipment.

An internal memo cited by The Wall Street Journal stated: “We did not anticipate the hardware demand growth that we are seeing in the industry,” adding that “the binding constraint includes critical server commodities—particularly DRAM and HDDs.”

Wall Street sees opportunity in memory segment

Despite the challenges, analysts view the supply crunch as a potential investment opportunity.

Chris Senyek, chief investment strategist at Wolfe Research, said strong earnings from large-cap tech companies are reinforcing investor interest in the semiconductor sector.

“With mega cap tech earnings coming in solid, adding more fuel to the AI theme, we believe that investors are likely to continue to chase the perceived tech winners in semis and memory,” Senyek wrote.

Key beneficiaries include major memory producers such as Micron Technology, SK Hynix, and Samsung Electronics, all of which play a central role in supplying DRAM and NAND chips.

Performance in related segments has been strong. NAND manufacturer SanDisk reported a sharp earnings beat, with analysts highlighting “nosebleed” average selling prices.

Meanwhile, storage companies such as Seagate Technology and Western Digital have seen significant stock gains in recent months.

Analysts also point to emerging opportunities in memory equipment testing, as new fabrication facilities come online to meet rising demand.

JPMorgan noted that this segment represents an “underappreciated near-term upside vector,” particularly as companies ramp up capacity.

As AI investment accelerates, the memory supply chain is becoming a defining factor in determining both the pace and cost of the industry’s growth, with implications stretching across technology companies, hardware suppliers, and investors alike.

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