Memory demand driven by AI agents
The guest argued that the AI trade is in its early stages, with Micron and other memory plays positioned for a multi-year demand surge driven by agentic AI, humanoids, and autonomous vehicles.
The argument
The guest compared the sudden demand for memory to adding 4 billion people to the planet overnight, arguing that supply and demand will remain out of balance until 2028. He noted that while growth rates may transition to a mid-cycle slowdown, memory remains a critical strategic asset.
The thesis, stress-tested
✓ What validates it
- ✓Micron maintaining supply-demand imbalance guidance in upcoming quarters
- ✓Sustained high average selling prices for high-bandwidth memory (HBM)
▸ Risks discussed
- ▸A transition to a mid-cycle slowdown where earnings growth rates decelerate
- ▸CapEx spending to increase supply could eventually ease the bottleneck
Hear it yourself
"Is he worried about the big memory shortage? Is the AI trade over or not? What's it mean for your portfolio? We talk about the debasement capitulation and what's going on with Bitcoin, gold, silver. And then, of course, we get into SpaceX and what's going on with Anthropic and Claude and OpenAI and Gemini and Google and many other names. This conversation is going all over the place, but it is ultimately Jordy and I trying to figure out what the heck's going on in the world and what does it mean for his portfolio, my portfolio, and yours. Here's my latest conversation with Jordy Visser. Alright, Jordy. The AI trade seems like it's over."
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