This article first appeared on GuruFocus.
A growing shortage of memory and storage is emerging as one of the biggest themes from CES 2026, and it is already shaping expectations for the rest of the year. Surging artificial intelligence demand, led by hyperscalers, continues to absorb available DRAM and NAND supply, tightening the market and pushing prices higher.
Wedbush analyst Matt Bryson noted that DRAM contracts for the first quarter remain unsettled, but vendors still aim for price growth of 50% or more.
That imbalance creates clear winners. Memory makers such as Micron Technology (NASDAQ:MU) and Sandisk (SNDK) stand to benefit from stronger pricing, while Pure Storage (NYSE:PSTG) and Silicon Motion (SIMO) could also see upside as enterprise storage spending rises.
Nvidia (NASDAQ:NVDA) adds further pressure through its expanding AI platforms, including its BlueField-4 networking and storage architecture, which may significantly lift storage requirements for AI workloads.Hard-disk suppliers Western Digital (WDC) and Seagate Technology (STX) also face robust demand, with supply lagging orders well into 2027.
On the flip side, higher memory costs weigh on PC and handset demand, creating potential headwinds for Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD). While AMD’s AI exposure helps offset risks, Intel remains more sensitive given its heavy reliance on PCs.
In the future, the increasing disparity between the AI-made demand and the memory supply that actually exists anywhere is dragging the industry to a crossroads. The increasing data-center penetration continues to bring Nvidia the gold rush of the tight memory and storage markets, despite the increase in component prices percolating along the supply chain.
In the case of Intel and AMD, the scenario is somewhat different. An increase in memory prices will create a squeeze on PC and phone demand, damaging the nearby volumes, whilst AMD is slightly better off as it puts more emphasis on the AI accelerators. The speed of supply response in answer to AI-led demand will become a key factor by 2026, determining which of the chipmakers suffers the largest subsidiary blow when the market tightens its knot, and who survives.