Bloomberg Surveillance · Friday, July 10, 2026
A significant portion of AI capital expenditure, projected to reach a trillion dollars, is being allocated to the memory sector, expected to rise from 30% this year to 40-50% next year. While this presents a 'phenomenal time' for memory companies, analysts caution that the sector remains highly cyclical, with capacity expansions potentially leading to an oversupply in 2028-2029.
“Thirty percent of the of that AI capex this year was going is going to go to memory. It's going to be forty to fifty percent next year. You know, we're talking about a trillion dollars of cappex and a very large portion of that is going to memory. It's it's a it's a phenomenal time to be a memory company right now. Would you say it's the peak, I'm no. I think I don't think we get into supplied demand equilibrium from memory until twenty seven or twenty eight. I you know, calling memory stocks is very very difficult. They're very very cyclical. I think there's still a lot of room for the for the fundamentals for the earnings to go up.”
“So this this is how these cycles work. There's there is lots of demand, they build, they spend a lot on CAPEX to catch up. I think the only thing that's different here is they have a lot of customers paying for it upfront, paying cash up front, and that levels it out a little bit. But there's a lot of capacity that's going to be coming online in twenty eight, twenty nine, we'll see, we'll see what memory looks like. Then”