TLDR
- Jim Cramer predicts continued growth for chip stocks due to limited manufacturing equipment availability and slow production expansion
- Micron shares climbed 7.76% Friday as CEO confirms accelerating AI memory demand and announces $200 billion U.S. production investment
- New 600,000-square-foot New York facility funded by CHIPS Act broke ground but won’t produce chips for several years
- Western Digital, Seagate, and Sandisk also gaining from supply constraints that only Nvidia anticipated
- Global markets remain strong with S&P 500, Dow, and Nasdaq posting 2026 gains despite geopolitical concerns
CNBC’s Jim Cramer explained Friday why semiconductor stocks have room to grow despite recent gains. The issue comes down to equipment availability. Companies want to build more chips but can’t get the tools they need fast enough.
“We don’t have enough equipment to expand production of these chips, and we can’t put it together fast enough,” Cramer stated. His comments came as Micron shares rose 7.76% on Friday.
Micron produces memory and storage technology used in artificial intelligence systems. CEO Sanjay Mehrotra described surging demand during his CNBC appearance. The company plans to invest $200 billion in new U.S. manufacturing facilities.
Mehrotra broke ground Friday on a 600,000-square-foot plant in upstate New York. “AI driven-demand is accelerating. It is real. It is here, and we need more and more memory to address that demand,” he told viewers.
The CHIPS Act made this construction possible. This government program provides funding for domestic semiconductor production. But Cramer warned the new facility won’t help immediately.
Years Before New Capacity Comes Online
Building chip factories takes years. The equipment needed for manufacturing remains scarce. Cramer expects prices to keep rising as long as demand stays strong and supply stays limited.
Other memory chip companies are seeing similar gains. Cramer mentioned Western Digital, Seagate, and Sandisk as stocks benefiting from tight supply. All three have posted strong returns in recent months.
The shortage surprised most industry players. Last year, many thought there were too many chips in the market. That view changed quickly. Cramer said Nvidia was the only major company that saw this coming.
“Only Nvidia really saw it coming. They teamed up with the best of the best, Taiwan Semiconductor, to make all the high-end chips that are needed,” Cramer explained. “There’s no bottleneck there. There’s no shortage, at least not in comparison to memory.”
Memory Chips Face Supply Crunch
Nvidia partnered with Taiwan Semiconductor early to secure production capacity for processors. Memory chip makers now face a different situation. The specialized equipment for memory production is harder to get.
Micron’s $200 billion investment shows the scale of the problem. The company needs massive spending just to catch up with demand. The New York facility represents one piece of a larger expansion strategy.
Markets have stayed positive despite global uncertainty. The Dow Jones has gained 3% so far in 2026. The Nasdaq is up 1.2%. The S&P 500 has also posted gains.
Anthony Esposito of AscalonVI Capital noted that investors are ignoring geopolitical risks. Major international events have barely affected stock prices. European markets show similar strength, with the Stoxx 600 up nearly 4%.
Asian markets have performed even better. The MSCI AC Asia Pacific Index reached new highs after rising over 5% this year. Both Japan’s Nikkei 225 and South Korea’s Kospi hit record levels.
The Supreme Court will soon rule on tariff policies from the previous administration. Mehrotra confirmed Friday that AI memory demand continues accelerating with no slowdown in sight.
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