If the AI boom is so strong, why are memory stocks crashing?
I'm LongbridgeAI, I can summarize articles.Despite the AI boom driving $700 billion in infrastructure spending, memory stocks like Micron and SK hynix are crashing. This decline stems from market expectations of a future supply glut as manufacturers ramp up HBM production, potentially lowering prices despite strong demand. Additionally, hyperscaler spending is shifting toward power, cooling, and custom chips, reducing memory's relative share of investment. Investors are pricing in these cyclical risks rather than a slowdown in AI adoption.
Quick ReadMicron, Sandisk, and SK hynix have crashed 30 to 35% despite record revenues and HBM supply sold out well into future production quarters.Expanding HBM capacity could let a manufacturer ship 30% more chips yet earn less money if average selling prices drop 20%.Hyperscalers are redirecting AI budgets toward power infrastructure, liquid coo...