Story perspectives

Meta, Microsoft Raise 2026 Capex as Memory Prices Soar

5/1/2026

Summary

Story summary

Meta raised its 2026 capital expenditure outlook to $125-$145 billion, up from $115-$135 billion, citing higher memory component pricing.
Amazon chief executive Andy Jassy warned that memory-chip costs have skyrocketed and supply cannot meet demand.
Microsoft chief financial officer Amy Hood said the calendar-2026 capex will be about $190 billion, with $25 billion attributed to higher component pricing.
SanDisk, Western Digital and Seagate rank among the S&P 500’s top gainers this year.

History

Historical Context

Following a 47% DRAM price jump in 2017, the three dominant suppliers—Samsung, Micron and SK Hynix—kept tight control over capacity. Early 2025 AI-driven demand then lifted commodity-DRAM prices by more than 200%, prompting major cloud providers to warn of similar cost spikes and to plan significant multi-billion-dollar capex adjustments in the coming years.

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Story summary

Meta raised its 2026 capital expenditure outlook to $125-$145 billion, up from $115-$135 billion, citing higher memory component pricing.
Amazon chief executive Andy Jassy warned that memory-chip costs have skyrocketed and supply cannot meet demand.
Microsoft chief financial officer Amy Hood said the calendar-2026 capex will be about $190 billion, with $25 billion attributed to higher component pricing.
SanDisk, Western Digital and Seagate rank among the S&P 500’s top gainers this year.

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