#BernsteinSaysMemoryBullMarketToLastUntil2027

The AI Memory Boom Might Still Have Room To Run One of the notes that grabbed my attention was Bernstein suggesting the memory chip bull market could stretch out to 2027. I think even if the rapid price expansion cools down a little bit here, the opportunity certainly hasn't evaporated, it’s simply morphing into a potentially more balanced, and sustainable environment. At the center of all of this, you still have AI.

With new AI models, platforms, cloud infrastructure and hyperscale data centers all relying on massive amounts of high-end memory, long-term cloud AI provider demand is more important than short-term consumer demand.

The whole sector is transitioning away from the smartphone era to an AI infrastructure phase, and this trend should play out over several years. Looking at the data so far, it’s pretty striking with huge growth in DRAM in the prior quarter and strength in some segments of the NAND market as well. While growth may moderate in the coming months, a deceleration in growth does not equal a decline in demand and if AI continues to gain traction, memory producers could remain in a healthy ecosystem. I also tend to believe investors get caught up on AI software but often overlook the companies that actually create the infrastructure to power these massive models; without robust memory chips you won’t have powerfulAIperformance and it remains a strong area of focus for me regardless of recent strength.

Of course expectations are sky high and thesemiconductors are never a perfectly linear path to the upside but overall the demand environment should remain positive over the long term with increased AI adoption in many industries.

Do you believe the current AI boom will continue to fuel demand for memory chips through 2027, or is that demand already baked into the stock prices of the memory players?

‍#AI #GateSquare