--- title: "Why Not Buy Memory Stocks? Here Are the Answers from Two Industry Titans" type: "News" locale: "en" url: "https://longbridge.com/en/news/296299214.md" description: "As the AI infrastructure boom pushes memory chip stocks into the spotlight, ARK Invest's Cathie Wood and tech analyst Ben Thompson have chosen to stay on the sidelines. The former warns that multiplying prices are a negative signal, as inference chips from companies like Cerebras and Groq are already bypassing high-bandwidth memory at the engineering level. The latter compares the situation to Iran blocking the Strait of Hormuz: playing this card will only accelerate opponents' efforts to find alternative routes. The moment of glory for memory stocks may well be the starting point for their replacement" datetime: "2026-08-19T03:57:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296299214.md) - [en](https://longbridge.com/en/news/296299214.md) - [zh-HK](https://longbridge.com/zh-HK/news/296299214.md) --- # Why Not Buy Memory Stocks? Here Are the Answers from Two Industry Titans Amid the investment frenzy in AI infrastructure, memory chip stocks appear to benefit from the explosion in computing power demand. However, two prominent investors and tech analysts remain cautious. Their reasoning converges on a core judgment: the high prices and profits in the memory sector are fostering forces that will ultimately eliminate its advantage. ARK Invest founder Cathie Wood recently explained on a podcast why she does not hold memory stocks. She views memory as the most commoditized and cyclical segment of the semiconductor supply chain, arguing that the current sharp price increases are not normal for the tech industry and are essentially a negative signal. Meanwhile, tech strategy analyst Ben Thompson offered a sharper metaphor, warning that memory manufacturers are repeating Iran's mistake of blocking the Strait of Hormuz—effective in the short term, but driving the entire industry to find detours in the long run. These judgments directly challenge the market sentiment currently favoring memory stocks. Against the backdrop of rapidly expanding AI inference demand, the shares of high-bandwidth memory (HBM) suppliers continue to be sought after. However, the logic presented by these two investors serves as a reminder to watch out for structural risks arising from shifts in technological pathways and proactive avoidance on the demand side. ## Cathie Wood: High Prices Are a Warning, Not a Benefit In a recent video, Cathie Wood directly addressed questions about her lack of exposure to memory stocks. She admitted that years of investment experience may have made her more vigilant regarding cyclical industries. In her view, memory is the most commoditized segment of the entire semiconductor supply chain, with a history of violent cyclical fluctuations. The current trend of HBM prices tripling, quadrupling, or even increasing tenfold is abnormal for the tech industry. "Most people think this is a huge positive, but it is actually a negative signal," she stated. She further supported this judgment from a cash flow perspective. She noted that a recent chart showed free cash flows for chip stocks moving in the exact opposite direction to those of hyperscale cloud computing operators (hyperscalers)—the former benefiting while the latter faced pressure. However, she emphasized that this state is temporary. **More critically, Cathie Wood pointed out that technological innovation is actively dissolving the dependence on high-bandwidth memory from the demand side. She cited Cerebras and Groq as examples—ARK's venture fund holds shares in Groq—noting that the architectural designs of both inference chip companies do not require high-bandwidth memory.** She compared this trend to Tesla's process of removing cobalt from batteries: once a supply chain element becomes expensive or risky, engineers find ways to bypass it. "In the inference space, we are seeing the demand for high-bandwidth memory being replaced by engineering solutions," she said. ## Ben Thompson: Memory Manufacturers Are Making Themselves Targets Tech strategy analyst Ben Thompson's concerns about the memory industry focus more on competitive dynamics. He used a geopolitical metaphor to describe the strategic dilemma facing memory manufacturers. "I compare memory manufacturers to Iran," Thompson said. His logic is that the deterrent power of the Strait of Hormuz lies in it being a card that can always be played. **Once it is actually used, it triggers the opponent's determination to completely bypass it. "They have played this card now, and it has indeed been effective. But the UAE and Saudi Arabia will build oil pipelines and new ports to ensure this never happens again."** He believes that the current high-price strategy of memory manufacturers is creating a similar effect. On one hand, Apple is lobbying to introduce Chinese memory suppliers in an attempt to break the existing supply landscape; on the other hand, the primary direction of optimization at the algorithmic level has become "how to reduce memory usage." "I worry that memory manufacturers may have done the same thing," Thompson stated. "No one will allow themselves to be put in such a passive position regarding memory issues again." His conclusion is that, in the long run, memory manufacturers may ultimately suffer the consequences of creating such a massive "target." ## Two Logics, One Conclusion Although Cathie Wood and Ben Thompson employ different analytical frameworks, their conclusions are highly consistent: the current strength of memory stocks is accelerating the process of their own replacement. Cathie Wood starts from the path of technological evolution, emphasizing that innovations in inference chip architectures will systematically reduce the demand for high-bandwidth memory. Ben Thompson approaches the issue from the perspectives of competitive gaming and supply chain politics, pointing out that high prices and high concentration will drive buyers to seek alternatives, whether through algorithmic optimization, introducing new suppliers, or redesigning system architectures. The judgments of both point to a risk worthy of investor attention: within the narrative of AI infrastructure investment, the rationale for memory stocks' benefits may be more fragile than the market expects, and the current high prosperity may be the strongest driver pushing the industry to accelerate its search for a way out. ### Related Stocks - [CBRS.US](https://longbridge.com/en/quote/CBRS.US.md) - [CBRX.US](https://longbridge.com/en/quote/CBRX.US.md) - [CBRG.US](https://longbridge.com/en/quote/CBRG.US.md) - [CBRZ.US](https://longbridge.com/en/quote/CBRZ.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Cerebras IPO Surged to $350, Now Testing $244 — Will Q2 Earnings Confirm Wafer-Scale Speed Story?](https://longbridge.com/en/news/295601693.md) - [CleanCore says Cerebras Minnesota AI data center deal totals about $800 million over 10 years](https://longbridge.com/en/news/295797188.md) - [Clutter by Iron Mountain relaunches premium managed personal storage service](https://longbridge.com/en/news/295803422.md) - [23:43 ETScitiX Introduces Production-Ready Inference Platform, Bringing Enterprise-Grade Control to Multi-Model AI Deployments](https://longbridge.com/en/news/296052279.md) - [Shurgard wins four Dutch planning permits for new self-storage sites](https://longbridge.com/en/news/295777336.md)