Why am I bullish on the memory sector in the long run? $DRAM $MU $SKHY $SNDK
I believe the memory shortage could persist until 2028, as HBM production continues to consume a significant portion of wafer capacity and new fabs are not expected to generate meaningful additional supply before then.
Multi-year customer contracts provide companies with greater visibility regarding pricing. At the same time, AI demand is making the memory sector less dependent on the classic "boom-bust" cycles of the past—characterized by rapid surges followed by sharp collapses. Consequently, I believe company profits and cash flows will prove more resilient than in previous cycles.
Furthermore, we haven't yet seriously discussed the robotics aspect. If agent-based AI systems like Muse, Grok Bot, and Dots evolve from software into physical robots over the next few years, a massive new layer of demand for memory will emerge—on top of the existing demand from data centers and AI infrastructure.
For these reasons, I find it difficult not to remain bullish on the memory sector through 2028. 🚀
I believe the memory shortage could persist until 2028, as HBM production continues to consume a significant portion of wafer capacity and new fabs are not expected to generate meaningful additional supply before then.
Multi-year customer contracts provide companies with greater visibility regarding pricing. At the same time, AI demand is making the memory sector less dependent on the classic "boom-bust" cycles of the past—characterized by rapid surges followed by sharp collapses. Consequently, I believe company profits and cash flows will prove more resilient than in previous cycles.
Furthermore, we haven't yet seriously discussed the robotics aspect. If agent-based AI systems like Muse, Grok Bot, and Dots evolve from software into physical robots over the next few years, a massive new layer of demand for memory will emerge—on top of the existing demand from data centers and AI infrastructure.
For these reasons, I find it difficult not to remain bullish on the memory sector through 2028. 🚀