---
title: "AI-driven chip demand strains supply as memory stocks slide"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286931548.md"
description: "Memory stocks, including Micron, Seagate, SanDisk, and Western Digital, have declined due to long production lead times amid rising AI-driven demand. Seagate's CEO expressed concerns about potential overcapacity from factory expansions, while immediate supply is nearly nonexistent. However, analysts remain optimistic, raising price targets for key chipmakers based on long-term contracts and anticipated growth in AI infrastructure."
datetime: "2026-05-19T14:33:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286931548.md)
  - [en](https://longbridge.com/en/news/286931548.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286931548.md)
---

# AI-driven chip demand strains supply as memory stocks slide

What’s driving the drop?: Micron, Seagate, SanDisk and Western Digital fell again as executives warned of long production lead times amid surging AI-driven demand. Capacity crunch concerns: Seagate’s CEO said expanding factories risks overcapacity, while immediate supply is described as 'essentially zero' by industry observers. Long-term optimism: Analysts raised price targets on key chipmakers, citing long-term contracts and AI infrastructure growth as drivers for future gains.

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