Memory as a share of Hyperscaler CapEx has drawn a lot of chatter, especially after MU earnings last week. Some market participants are shocked at how high it could be next year.

We published our initial view in late February, and many clients pushed back on our 30% number: "Memory is in the teens as a share of a server BOM. How could overall CapEx be that high?"

In May, after pricing rose even faster than expected, we responded directly: combine DRAM, NAND, and HBM, and memory spend in an Nvidia system clears 30% by YE26 and moves above 40% in CY27.

We expect this dynamic to be better understood in the coming months.