#BernsteinSaysMemoryBullMarketToLastUntil2027

The AI Memory Cycle Still Looks Strong to Me Bernstein reported this week on the possibility of a sustained bull market for memory chips lasting until 2027. Forget those heady spikes in prices, we may be headed for something more... Steady. Frankly, I like it.

After the torrid pace seen of late, a slower, more sustainable cycle seems even more appealing.

All the AI growth has me optimistic. The chips that underpin nearly every cloud provider, major AI model and hyperscale data center are made of high-speed memory chips. Consumer devices may not be the growth drivers they once were, but AI demand is and will likely only become a bigger one for the industry’s leading companies. The gains made in DRAM prices have been impressive and parts of the NAND market continue to hum along. Even if quarterly growth slows from these levels the big story remains the same.

As long as these companies are pushing for larger models and more data, there will be more demand.

I also think people under appreciate the firms supplying the hardware behind the AI revolution. It's about software and AI assistants, sure, but you need high performance memory to run the servers that drive them. I'll keep an eye on semiconductors regardless of the rally.

Nothing is linear though, expect volatility The bar is already set quite high for the semiconductor industry. Nothing goes straight up and I expect we'll see our share of pullbacks, particularly if long-term themes remain in tact. My thought process revolves around what truly drives this: Will AI investment continue to accelerate in the years ahead?

If the answer is yes, the memory space should continue to reap rewards.

What do you think - Can the AI boom in memory really stretch all the way to 2027, or is it time to take some chips off the table?

‍#AI #GateSquare