SpaceX CEO Elon Musk noted during the company's Q2 conference call that the limiting factor in building out AI computing capacity is currently the supply of memory. He highlighted a significant imbalance, with memory production capacity increasing by approximately 20% per year, while demand has surged by 200%. This imbalance has led to soaring prices for memory chips. Memory chip makers Micron and Sandisk have seen their shares rise by triple-digit percentages in 2026, though they have recently sold off from peaks due to concerns about AI spending. Micron expects more production capacity by mid-2027 and another facility by 2028, anticipating market tightness to persist beyond 2027. Sandisk recently reported 51% quarter-over-quarter growth for fiscal Q4 2026, with two-thirds of that growth attributed to higher prices.