MU, SNDK, WDC, SKHY Stock Jump After-Hours — Memory Chipmakers Soar After Amazon, Apple Management Flag Soaring Costs, Supply Crunch

Most memory chipmakers extended Thursday’s gain after-hours as tech bigwigs flag continued rise in memory prices.

• Samsung warned of a memory crunch into 2028. 
• Apple CEO Tim Cook says memory costs are likely to keep rising.
• Amazon hikes 2026 capex target due to higher memory costs. 

Memory chipmaker stocks surged after-hours after Amazon and Apple management, in their post-earnings calls, flagged that memory costs are likely to keep rising amid relentless demand as hyperscalers continue to build out large data centers. 

Micron Technology (MU), SanDisk (SNDK), Western Digital (WDC) and U.S. listed shares of SK Hynix (SKHY) all jumped between 2% and 8% after-hours, extending Thursday’s gains. 

Moreover, strong tech earnings from Microsoft (MSFT) and Lam Research (LRCX) also aided sentiment towards memory stocks. 

DRAM and NAND storage makers have been beneficiaries of hyperscaler AI spending, which in turn has led to supply constraints, pushing costs higher. In what seems to be a vicious loop, investors recently sold off chipmaker stocks owing to concerns that the spending spree is nearing its peak. 

Samsung also warned on Thursday that the memory chip crunch could last until 2028. 

Apple CEO Tim Cook Sees Memory Costs Rising

According to Apple CEO Tim Cook, memory expenses are anticipated to continue their upward trajectory.

During the recent earnings call, Cook said Apple experienced a notable increase in memory procurement costs during the June quarter compared to the March quarter. While this development aligns with investor expectations, Cook emphasized that the financial pressure is intensifying.

"Looking ahead to September, we project even steeper memory costs," Cook stated.

He further explained, "The DRAM market is currently dominated by just three primary suppliers. Naturally, the entry of additional suppliers would be a welcome development, offering potential relief for both our supply chain and our pricing structures."

The surge in memory costs is largely driven by its essential role in powering AI applications, creating a scenario where market demand significantly outstrips available supply. To counteract these margin pressures, Apple and various other hardware manufacturers have begun increasing their product prices.

Amazon Boosts 2026 Capex Spending Due To Rising Memory Cost

“We now believe we will spend approximately $220 billion in cash CapEx in 2026…The higher cost of memory is pushing this number up from our prior estimate of about 200 billion,” Amazon CEO Andy Jassy said during Amazon’s Q2 earnings call. 

On the capex front, the company reported spending about $53 billion on property and equipment outlays, including proceeds from some sales, in Q2. Amazon earlier had mentioned its plan to spend about $200 billion on capital projects in 2026, mostly on AI-led initiatives, prompting investors to focus on any signs of overspending.

Amazon, along with other hyperscalers including Alphabet (GOOGL, GOOG), Microsoft (MSFT), and Meta Platforms (META), has been under intense investor scrutiny related to its AI capital expenditure plans as doubts seep in about the returns these expenses would generate. 

MU, SNDK, SKHY Stock: Retail View

Retail sentiment on Stocktwits for the three stocks was between ‘extremely bullish’ to ‘bullish’ with ‘high’ message volumes. 

A user highlighted consistent demand for memory chips. 

View this Stocktwits post

MU and SNDK stock gained 212% and 430% respectively year-to-date. 

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