DRAM remains the ultimate AI bottleneck
The bull case for high-bandwidth memory manufacturers argues that DRAM is the most critical bottleneck in AI scaling, with supply structurally constrained to just three global players.
The argument
The speakers highlighted Micron's sold-out 2026 capacity and new supply agreements with floor pricing as evidence of structural pricing power, noting that DRAM could consume 30% to 40% of hyperscaler CapEx next year.
The thesis, stress-tested
✓ What validates it
- ✓Micron maintaining or exceeding gross margin floors in upcoming quarters
- ✓Hyperscaler CapEx reports confirming 30% or greater allocation to memory
▸ Risks discussed
- ▸Ramping up new fab capacity is slow and subject to regulatory or environmental delays
- ▸Potential flooding of low-end consumer DRAM by Chinese competitors like CXMT
Hear it yourself
"a disgrace of a country. She's written favorably about communism and seizing the means of production and on and on and on. So this is basically the new Democratic party. It's gonna be even if the Democrats do take the House in November and Hakeem Jeffries becomes speaker, this is gonna prove to be a huge headache for him managing all these new DSA members. Mhmm. Because they do not actually see the traditional establishment wing of the Democratic Party as an ally. They see it as an obstacle. This is the DSA co chair Josh Block said, We're using the Democratic Party as a ballot access vehicle."
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