Memory makers are slaves to the boom-bust rollercoaster, and the AI boom is the wildest ride of all
AI + ML
The RAMpocalypse may be the precursor to the AIpocalypse
It’s a good time to be in the memory business. As the AI datacenter business booms, SK Hynix and Micron’s revenues have tripled in the last year, and Samsung’s has roughly doubled.
But while the trio have the AI revolution to thank for their good fortune, the deck is stacked for a reversal. Such is the memory business historically.
Today, sky high demand for high-bandwidth memory (HBM), DDR5, and NAND flash memory needed for GPU servers has devoured any remaining capacity, leading to shortages that have driven up prices on everything from consumer electronics to AI infrastructure. You can't even buy a budget smartphone these days.
The big three memory vendors are now in the process of investing hundreds of billions of dollars to bring new fab capacity online.
In June, South Korean President Lee Jae Myung ...
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