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Western Digital expands buyback by $4 billion as AI drives chip demand

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Data storage maker Western Digital said its board has approved an additional $4 billion for share repurchases, citing strong demand for memory chips used in artificial intelligence servers. The announcement pushed shares up about 5% in premarket trading, extending a rally that has already lifted the stock sharply over the past year.

The company said the new authorization adds to an existing buyback program, under which roughly $484 million remained available as of earlier this week. Western Digital shares have surged on expectations that AI-driven data center investment will continue to boost demand for storage products, including hard drives and flash memory.

A global shortage of memory chips has intensified competition for supply, particularly from AI developers and consumer electronics makers. Limited manufacturing capacity and longer lead times have driven prices higher, benefiting suppliers positioned to serve the fast-growing AI server market.

Western Digital recently forecast fiscal third-quarter revenue and profit above Wall Street expectations, pointing to strong sales of storage solutions for AI workloads. Management said the buyback expansion reflects confidence in cash generation and long-term demand trends tied to artificial intelligence infrastructure.

Apple warns rising memory costs as AI chip demand tightens supply

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Apple warned that increasing memory chip prices are beginning to weigh on profitability, as major suppliers shift production toward higher-margin chips used in artificial intelligence systems. Chief executive Tim Cook said market pricing for memory has risen sharply and is expected to have a greater impact in the current quarter, following only limited effects during the key holiday period.

The comments echo recent warnings from South Korean chipmakers Samsung Electronics and SK Hynix, which together dominate the global DRAM market. Both companies have been prioritising high-bandwidth memory used in AI servers, tightening supply of conventional DRAM chips used in smartphones, personal computers, and consumer electronics.

Apple is likely to require more memory components as demand for its latest iPhone models remains strong, particularly in China and India. However, the company declined to say whether higher component costs could translate into increased product prices. Analysts warn that sustained memory shortages could pressure margins across the consumer electronics sector and disrupt supply chains.

Chipmakers have also become more cautious about expanding capacity after years of aggressive investment, limiting the pace at which supply can respond. As AI infrastructure spending accelerates, memory availability for traditional devices is expected to remain constrained, contributing to weaker outlooks for global smartphone and PC shipments in the coming years.

Exclusive: Micron to announce memory chip manufacturing investment in Singapore

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U.S. memory chipmaker Micron Technology is set to announce a new investment to expand memory chip manufacturing capacity in Singapore, according to sources familiar with the matter. The move comes as global industries face an acute shortage of memory chips driven by rapid expansion in artificial intelligence infrastructure and growing demand from consumer electronics.

Sources said the announcement could come as soon as Tuesday, with at least part of the investment expected to focus on NAND flash memory. Micron already has a significant manufacturing presence in Singapore, where it produces nearly all of its flash memory chips. The company is also building a $7 billion advanced packaging plant for high-bandwidth memory used in AI chips, which is scheduled to begin production in 2027.

The investment reflects intensifying competition among major memory producers as supply struggles to keep pace with demand. Rivals including Samsung and SK Hynix have announced new production lines and accelerated factory timelines, yet analysts warn the global memory shortfall could persist until late 2027.

Micron has also been exploring ways to boost output elsewhere. The company recently said it was in talks to acquire a fabrication site in Taiwan to expand DRAM wafer production, underscoring the scale of investment required to stabilize the memory market amid the AI boom.