Daily Alpha · X

SK Hynix's Solidigm plans $100B of New York NAND fabs

Jukan relays Korean media that SK Hynix subsidiary Solidigm is pursuing two NAND fabs at the Marcy Nanocenter in New York at a total cost of $100B. The plan would add substantial NAND capacity.

A $100B NAND plan is a long-cycle supply response; it validates scarcity today but adds oversupply risk later.

Watch Official SK Hynix confirmation, New York incentives and fab construction timelines.

ESMT at 1.59x annualized P/E screens cheap only if DDR2/DDR3 prices hold

A post from the @aleabitoreddit account reports ESMT revenue of $679.4M, operating profit of $403.4M and $757M of net cash, putting the stock at about 1.59x annualized P/E. It also relays Economic Daily that management does not expect a meaningful DDR2/DDR3 supply increase in 2027 and believes prices can be maintained.

If memory prices hold, the low multiple may reflect a mispricing; if DDR2/DDR3 pricing rolls over, the same multiple would be a trap.

Watch ESMT Q4 price realization, DDR2/DDR3 supply and evidence that prices are maintained.

$AAPL earnings (for AI infra investors) Apple's CEO on memory: "What we're seeing with memory pricing right now is UNPRECEDENTED." ▸ Apple…

…committed an extra $33B in ONE quarter just to lock in supply ▸ Memory is now the main thing squeezing Apple's margins AND capping Mac and iPad sales ▸ Siri AI now runs a cloud inference bill, booked as a cost of Services Did Apple manage the impossible? To not participate in the AI upside while getting screwed fully by all the negative effects like memory prices going up? 😂 We're still early in the buildout and Apple has so many strategic ways to play this and win. But at some point they really need to make a freaking move and share their plan lol

Hyperscaler CDS at new highs pressure neocloud funding costs

Oguzerkan flags hyperscaler credit default swaps breaking to new highs and argues this is especially bad for neoclouds such as CoreWeave. Higher funding costs for hyperscaler data-center projects should transmit into even higher rates for smaller AI landlords.

Credit is becoming the binding constraint for AI infrastructure; equity weakness in neoclouds may be a funding-cost signal rather than a demand signal.

Watch Hyperscaler CDS spreads, CoreWeave bond prices and neocloud debt issuance terms.

Oracle sells $10B of stock at 11% discount, lowest price since May 2024

Oracle sold $10B of stock at $116, an 11% discount to Friday's close and effectively the lowest price since May 2024. The size and discount make it a test of investor appetite for AI-related equity supply.

A discounted equity raise from a major AI infrastructure spender signals that capex funding is now a shareholder-return issue, not just a demand issue.

Watch Oracle's post-pricing spread, follow-on rating commentary and whether other AI builders copy the equity-plus-debt structure.