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Dig In
Memory Lane
For a while, the artificial intelligence trade seemed to belong to the “Magnificent Seven” – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. But lately, the rally has started moving down the semiconductor food chain. Investors are realizing the AI buildout does not stop at the household names. It also needs memory chips, custom silicon, and networking equipment to keep everything running.
Memory chips were never supposed to be the exciting part. They store data quietly and mostly out of sight. But now, names like Micron, Samsung, and SK Hynix are moving from the background of the AI trade to center stage because data centers need more than powerful processors. They need enough memory to keep those processors fed. No memory, no performance.
That has made high-bandwidth memory, or HBM, one of the biggest bottlenecks in AI infrastructure, with supply reportedly spoken for well into next year. As cloud companies race to lock in capacity, prices have surged – and Wall Street has noticed. Higher chip prices can mean stronger revenue, better margins, and bigger earnings estimates.
Of course, memory has always been boom-and-bust, so “this time is different” still deserves oven mitts. But for now, these quiet chips are loudly driving the market.
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