AI build-out drives memory price hikes
The speakers discussed how the massive AI infrastructure build-out is causing memory prices to surge, prompting hardware manufacturers to raise prices.
The argument
The guest noted that companies like Micron are seeing surging demand, while Apple and Xbox are raising prices on RAM-dependent products, which could introduce localized inflation.
The thesis, stress-tested
✓ What validates it
- ✓Continued sequential price increases in DRAM and NAND memory
- ✓Further price hikes announced by consumer hardware OEMs
▸ Risks discussed
- ▸Potential government or administrative intervention to cool the AI trade
- ▸Overcapacity in memory production later in the cycle
Hear it yourself
"you know, you just gotta fade all the dumb narratives once it gets, you know, extreme. So that's that's what I'm saying in terms of, the hawkishness. But how it plays out, what's really fascinating to me is, like, guys are getting beaten up because they're they've been long the thing so long, and the indexes are doing nothing. But if you look on a sector basis, this is what the main thing is. They are threading the needle here from a policy perspective in a lot of senses where the it's getting it's rotational. It's not like 2008 where you see credit spreads blow out."
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