Micron Blows Past $1 Trillion on AI Demand

Bloomberg Intelligence semiconductor analyst Jake Silverman discusses how memory chipmakers like Micron, SK Hynix, Samsung, and SanDisk are benefiting from AI-driven demand and structural undersupply. He expects pricing to decelerate but remain elevated, with the supply-demand imbalance persisting for 12-24 months. The discussion also touches on historical cyclicality, South Korean chipmakers' performance, and consumer pricing implications. - Micron surpassed a $1 trillion valuation but trades at under 10 times forward earnings. - Memory chipmakers are collectively benefiting from AI-driven demand and higher DRAM/NAND pricing. - Structural undersupply exists due to past underinvestment and long fab construction lead times. - Pricing is expected to decelerate but will still positively impact memory company revenues. - SK Hynix has been a leader in high bandwidth memory; Samsung is catching up. - The KOSPI index has gained 98%, driven by the performance of South Korean chipmakers. - Retail investors have shown significant participation in the South Korean chip stock market. - Consumer pricing impact from higher memory costs remains uncertain; Apple appears less inclined to raise prices.