The surging demand for artificial intelligence data centers is causing a global memory chip shortage, a crisis impacting profits and raising prices for electronics. Tech giants like Alphabet, Amazon, Meta, Microsoft, and OpenAI are rapidly expanding their AI infrastructure, driving up demand. Prices for certain memory chips, such as DRAM, have soared by 75 percent in just one month. Chip manufacturers like Samsung, SK Hynix, and Micron are now prioritizing the production of high-bandwidth memory (HBM) for AI accelerators from companies like Nvidia and AMD.
CoreWeave, an AI data center company that went public in March 2025, is poised for significant growth, with its revenue backlog reaching $55.6 billion in the third quarter of 2025. The company provides cloud computing services to major customers including Meta Platforms, Microsoft, and OpenAI. Analysts predict CoreWeave's revenue could hit $12 billion in 2026, fueled by hyperscalers planning to invest $700 billion in AI data centers that year. Bridgewater Associates, founded by Ray Dalio, recently invested $253 million in Nvidia stock, making it a substantial part of their portfolio, recognizing Nvidia's central role in AI infrastructure, with the company reporting $51.2 billion in data center revenue, a 66 percent year-over-year increase.
In hardware, Microchip Technology expanded its edge AI products and launched a new power module for AI servers in early February 2026, also partnering with Hyundai Motor Group for in-vehicle networking. Allegro MicroSystems introduced its ACS37017 Hall-effect current sensor, offering high accuracy for power electronics in AI data centers, electric vehicles, and clean energy systems. Seeking Alpha analysts have identified top hardware stocks for AI growth, including IESC, Vertiv, Micron, Marvell, Credo, Astera Labs, and AMD, alongside major players like Amazon, Alphabet, TSMC, ASML, and Apple, noting Nvidia faces risks from customer concentration and competition.
Artificial intelligence is also transforming drug discovery, with Eli Lilly launching its TuneLab platform last September to predict drug molecule performance. In October, Eli Lilly partnered with Nvidia and committed $1 billion to build a supercomputer for biological research. By January, they formed a co-innovation lab to link clinical data with AI, aiming to accelerate medicine discovery and save significant time and money in the development process.
While AI's role in food product creation is currently limited, companies like McCormick use it to inspire human flavor scientists, with the global market for AI in food and beverage projected to reach $50 billion by 2030. Elsewhere, fears about AI disrupting industries led to a stock market sell-off in software, real estate, and trucking sectors on February 16, 2026, though experts view these concerns as largely speculative for now. Ethereum, the world's second-largest cryptocurrency, is also positioning itself to be a leader in the AI future, with its co-founder Vitalik Buterin suggesting its blockchain could serve as an economic base layer for AI.
Key Takeaways
- A global memory chip shortage is worsening due to high demand from AI data centers built by companies like Alphabet, Amazon, Meta, Microsoft, and OpenAI.
- Prices for DRAM memory chips have soared by 75 percent in one month, with chip makers prioritizing high-bandwidth memory (HBM) for Nvidia and AMD AI accelerators.
- CoreWeave, an AI data center company, projects $12 billion in revenue for 2026 and has a revenue backlog of $55.6 billion, serving customers like Meta Platforms, Microsoft, and OpenAI.
- Hyperscalers are planning to spend $700 billion on AI data centers in 2026.
- Bridgewater Associates invested $253 million in Nvidia stock, making it nearly 2.63 percent of their U.S. stock portfolio.
- Nvidia reported $51.2 billion in data center revenue, marking a 66 percent year-over-year increase.
- Eli Lilly committed $1 billion and partnered with Nvidia to build a supercomputer for biological research, aiming to accelerate drug discovery using AI.
- Microchip Technology expanded its edge AI products and launched a new power module for AI servers, also partnering with Hyundai Motor Group for in-vehicle networking.
- Allegro MicroSystems introduced the ACS37017 Hall-effect current sensor, designed for high accuracy in power electronics for AI data centers, electric vehicles, and clean energy systems.
- The global market for AI in food and beverage is projected to reach $50 billion by 2030, though its current role in product creation is limited to inspiring human scientists.
Microchip expands AI solutions with Hyundai partnership
Microchip Technology expanded its edge AI products and launched a new power module for AI servers in early February 2026. The company also announced a partnership with Hyundai Motor Group for in-vehicle networking. These moves aim to boost Microchip's role in AI and automotive technology. Microchip also reported better quarterly results and issued $1.40 billion in new convertible notes due 2030. The company expects to reach $6.6 billion in revenue by 2028.
Allegro MicroSystems unveils new AI current sensor
Allegro MicroSystems launched its ACS37017 Hall-effect current sensor earlier this month. This new sensor offers high accuracy for power electronics in AI data centers, electric vehicles, and clean energy systems. It features integrated high-voltage isolation and precise current sensing. The company also promoted Ian Kent to Senior Vice President Operations and Jamie Haas to Vice President Chief Technology Officer. Allegro aims to meet the growing demand for precise power and current sensing across various industries.
Eli Lilly uses AI to speed up drug discovery
Eli Lilly is using artificial intelligence to transform drug discovery. Last September, the company launched its TuneLab platform, which helps other drugmakers predict how drug molecules will perform. In October, Eli Lilly partnered with Nvidia and committed $1 billion to build a supercomputer for biological research. By January, they formed a co-innovation lab to link clinical data with AI, aiming to accelerate medicine discovery. This AI approach helps save valuable time and money in developing new drugs.
Food companies use AI sparingly in product creation
Food companies like McCormick use artificial intelligence in product development, but they say its role is currently limited. According to a CNBC report from February 14, 2026, AI tools help inspire human flavor scientists rather than replace them. Startups are trying to use AI to predict how people will react to new foods before physical testing. Industry experts believe the global market for AI in food and beverage could reach $50 billion by 2030. However, some food scientists note that the technology is still developing and many startups are still gathering data.
AI demand causes global memory chip shortage
A global shortage of memory chips is worsening due to the high demand for AI data centers, as reported on February 15, 2026. Tech leaders like Elon Musk and Tim Cook warn this crisis is hurting profits and raising prices for many electronics. Companies like Alphabet, Amazon, Meta, Microsoft, and OpenAI are rapidly building AI data centers, driving up demand. Prices for some memory chips, like DRAM, have soared by 75 percent in one month. Chip makers Samsung, SK Hynix, and Micron are now prioritizing high-bandwidth memory for AI accelerators from Nvidia and AMD.
CoreWeave stock poised for big growth in 2026
CoreWeave, an AI data center company that went public in March 2025, shows strong potential for growth by the end of 2026. The company builds dedicated AI data centers and provides cloud computing for major customers like Meta Platforms, Microsoft, and OpenAI. Its revenue backlog jumped to $55.6 billion in the third quarter of 2025. Analysts predict CoreWeave's revenue could reach $12 billion in 2026, potentially increasing its market value to $120 billion. This growth is fueled by hyperscalers planning to spend $700 billion on AI data centers in 2026.
AI fears cause stock market sell-off
Fears about artificial intelligence disrupting industries led to a stock market sell-off in software, real estate, and trucking sectors on February 16, 2026. Investors worried that AI tools, like a new insurance app from startup Tuio, could challenge existing business models in financial services. In real estate, concerns grew that AI might reduce demand for office space and impact labor-intensive businesses. The logistics sector also saw a drop after Algorhythm Holdings, a small AI and logistics company, announced a new platform. Experts believe these fears are mostly speculative for now.
Ethereum aims to lead in AI cryptocurrency
Ethereum, the world's second-largest cryptocurrency, is looking to become a leader in the artificial intelligence future. While known for decentralized finance, Ethereum's co-founder Vitalik Buterin believes its blockchain technology is well-suited for AI due to its speed and decentralized nature. He suggests Ethereum could serve as an economic base layer for AI, helping to create tools for interacting with AI models and enabling AI agents to coordinate. Several AI projects, including ChainGPT and Virtuals Protocol, are already building on Ethereum.
Bridgewater invests $253 million in Nvidia AI stock
Bridgewater Associates, founded by Ray Dalio, invested $253 million in Nvidia stock as of February 16, 2026. This significant investment increased Bridgewater's stake by 1.35 million shares, making Nvidia nearly 2.63 percent of its $27.4 billion U.S. stock portfolio. Despite a recent dip in Nvidia's stock price, Bridgewater sees the company as central to the AI infrastructure buildout. Nvidia reported $51.2 billion in data center revenue, a 66 percent increase year over year. Bridgewater also made large investments in Oracle and Micron Technology.
Analysts name top hardware stocks for AI growth
Seeking Alpha analysts have identified several hardware stocks well-positioned for the artificial intelligence revolution. Their top picks for data center infrastructure include IESC, Vertiv, Micron, Marvell, Credo, Astera Labs, and AMD. Other important companies mentioned are Amazon, Alphabet, TSMC, ASML, and Apple. Analysts note that Nvidia faces risks from customer concentration and competition. Companies like Apple, Alphabet, and Amazon are seen as having sustainable growth due to their own hardware and cloud services, benefiting from rising consumer AI spending.
Sources
- Microchip’s Edge AI, Hyundai Deal and New Notes Could Be A Game Changer For Microchip Technology (MCHP)
- Does Allegro MicroSystems’ (ALGM) New AI-Focused Current Sensor Clarify Its Long-Term Power Electronics Edge?
- Forget AI Stocks: This Pharma Giant Is Using AI to Dominate Drug Discovery
- Food Companies Say AI Plays Only Limited Role in Products
- Rampant AI Demand for Memory Is Fueling a Growing Chip Crisis
- The AI Stock That Could Make Early Investors Rich by the End of 2026
- Why the ‘AI scare trade’ might not be done
- The Top Artificial Intelligence (AI) Crypto to Buy Right Now
- Ray Dalio’s Bridgewater invests $253 million in major AI stock
- SA Asks: Which hardware stocks are best positioned for AI?
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