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JPMorgan Chase predicts that the storage chip industry will experience the longest boom cycle in history: the market value of leading manufacturers is expected to approach USD 1 trillion this year and soar to USD 1.5 trillion by 2027, an increase of over 50%. The demand for HBM continues to squeeze traditional DRAM production capacity, and AI inference consumes three times the memory compared to training, leading to a supply-demand gap that will persist until 2027. It is forecasted that DRAM prices will surge by 53% in the fiscal year 2026, with strong enterprise market performance completely offsetting pressure from the consumer side
Broadcom CEO Chen Fu Yang stated that silicon photonics technology will not impact data centers in the short term, but it will become a necessary path in the future. Chen pointed out that before silicon photonics technology becomes essential, it needs to go through two waves of innovation: expanding copper-based interconnect technology and pluggable optical devices. Broadcom is already conducting research and development to meet future demands and emphasized that the demand for artificial intelligence hardware will continue to exist
Nvidia's stock has dropped 17% from its 52-week high due to investor concerns about the sustainability of the AI boom. Despite robust demand for AI chips and strong fiscal Q3 results, including a 62% revenue increase, the stock's high valuation poses risks. Competition and geopolitical factors add uncertainty. While the pullback makes the stock more attractive, the lack of a sufficient margin of safety suggests caution for potential investors.
On December 12, Eastern Time, Broadcom options saw a total of 201725 contracts traded, with calls accounting for 97% and puts making up 51%.
On December 12, Eastern Time, NVIDIA options saw a total of 1640197 contracts traded, with calls accounting for 112% and puts making up 39%.
