Someone asked whether OpenAI's discovery of a technology that could halve reasoning costs would be bearish for semiconductors.

In fact, the lower the reasoning cost, the better—it reduces costs, not dependence on hardware. However, there will certainly be short-term sentiment, and it depends on the details they disclose; otherwise, it's hard to determine which upstream sector will be affected specifically.

Actually, the only way for storage to crash is oversupply: a sudden explosion in production where everyone is no longer short of goods and can buy as much as they want.

Price increases are actually meant to raise funds for capacity expansion—essentially, downstream players like Apple are paying off the debt from price cuts in 2023.

As for efficiency, the impact of algorithms is temporary, and the market already expects them to keep improving.

On one hand, the more you improve efficiency, the more I buy, giving me a stronger competitive advantage.

On the other hand, the current shortage downstream is so severe that management won't stop ordering just because of some news—who wants to repeat the mistake of saving a little money now, only to find they can't get the goods again when needed?

What everyone is probably thinking now: if only I had placed 10 times the storage orders last year.

Therefore, I believe the current demand is long-term and stable.

Another possibility: a group of geniuses invents a substitute for NAND/DRAM.

But no matter what the substitute is, it will still be semiconductor. Since it's semiconductor, manufacturing requires lithography machines and foundries.

The current contradiction is precisely the shortage of lithography machines and foundries—can new capacity just fall from the sky? The reason for storage price increases is not that DRAM is hard to manufacture or that the technical threshold is too high, but that there aren't enough factories.

So, we can actually understand that the entire industry is now buying MU and SNDK stocks to help them raise funds for building factories, providing capacity for the next generation of humanity.

This way, you won't always worry about storage being a bubble and expecting a crash.

Storage is really different from silver and Bitcoin.

At least in the last five years, I've seen this for the first time.

Tim Cook, on the other hand, said it's the first time in 40 years.

Thank you, everyone.

😂😂😂