Amazon's AI Spending Surge Points to Multiyear Memory Chip Shortage

Amazon CEO Andy Jassy recently acknowledged that his company's capital expenditures budget is rising due to surging memory chip prices. This increase, from $200 billion to $220 billion in 2026, is mainly attributed to high bandwidth memory (HBM) and advanced DRAM costs.

Jassy stated that Amazon will not have enough capacity to meet all demand in 2026, and this dynamic will likely persist until at least 2028. This shortage of AI memory has become a bottleneck for the company's infrastructure spending.

Amazon is one of three manufacturers that supply advanced DRAM and high-bandwidth memory. Micron Technology is another key player in this market, and Jassy's comments provide validation for the company's business prospects.