Elon Musk highlights memory as AI’s biggest bottleneck, impacting Micron and SanDisk

Elon Musk has been telling anyone who will listen that artificial intelligence isn’t being held back by compute power, training data, or even regulation. The real chokepoint, he says, is memory. And the numbers backing up that claim paint a picture of a supply-demand mismatch that’s hard to ignore. According to Musk’s comments during SpaceX calls in 2026, global memory supply is growing at roughly 20% per year. AI demand for that same memory, meanwhile, is expanding at 200% or more annually. A supply problem with no quick fix Musk has pointed out that the US currently has no high-volume memory fabrication plants in operation. Micron Technology is building a new fab in New York, but it isn’t expected to reach volume production until around 2028. During a July 2026 earnings call, Musk noted that Tesla had managed to secure what he called a “very significant allocation” of memory chips from Micron at reasonable rates. Winners in a supply-constrained world Micron, SanDisk, and South Korea’s SK Hynix have all experienced significant stock volatility as investors try to price in the AI memory boom. Some of these names have posted triple-digit percentage gains over the trailing twelve mon...