#BernsteinSaysMemoryBullMarketToLastUntil2027

AI Boom May Prolong Memory Chip Rally Into 2027 The one thing I keep watching in markets, for whatever reason, is just how AI keeps quietly changing whole industries you barely notice. Most people would not consider memory chips particularly exciting, but this is becoming the best off-topic investment out there due to AI. It looks like the current memory chip bull market may go on till 2027, and that is a bit of a call.

You have had an explosive phase.

Slowing growth may not be the opportunity that is out. After such a rip higher in prices it is not at all unusual for prices to pull back slightly and go into a consolidation. The thing I’m interested in is just that the AI-infrastructure component demand continues to stay strong and that seems assured. There are billions of dollars being poured into AI-driven data centers and data growth that requires memory chips to go along with that.

The consumer space has the softening.

We see demand softening from enterprise and it remains tied to that the huge investments that you have had been made by cloud and tech service providers for their AI infrastructure. That’s structural growth that continues. To anyone following the crypto world and this one, it's yet another reminder that AI is not a software phenomenon, or at least software in a sense.

Hardware to support AI has probably a similarly if not a higher level of value coming in the next few years as well. The chip vendors in between will quietly have strong stock performances while nobody really knows what a good enterprise application for generative AI might even look like. This said markets very rarely go up in a straight line.

Everybody is already expecting this, and of course the business is never as good as you'd expect and when it will eventually decelerate faster than the street is thinking, it is gonna fall a good deal and it will.

Rather be in a reasonably optimistic stance without overly aggressive expectations than be trying to catch a momentum trade after it had moved such a substantial amount. Be that it is about a crypto asset, or AI software or stocks, follow the infrastructure that is underneath. We think it is a great sector to be in over the next couple of years. Will this chip bull market have the steam it requires to reach 2027, or are expectations running too high?

‍#AI #GateSquare