Analyst: Forget the Chip Cycle, Because AI Demand Has Permanently Rewired Semiconductor Pricing

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An IDC analyst suggests that the traditional semiconductor boom-and-bust cycle is being replaced by a structural shift driven by AI demand. This shift involves sustained high prices for memory chips, increased data center buildout, and long-term supply agreements. Geopolitical pressures are also contributing to supply chain diversification and reshoring of manufacturing, further impacting the industry’s pricing dynamics.

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