Memory's share of Cloud Service Provider (CSP) hardware capital expenditure is projected to reach 52% in 2026, a significant increase from less than 20% in the pre-AI era. This forecast for 2026 CSP capex jumped from 20% to over 50% in the past year, driven by stronger-than-expected DRAM and NAND price momentum in Q1.
Memory is becoming the dominant cost component in AI infrastructure, shifting capital allocation away from other compute elements for hyperscalers.