Qualcomm Says Data Center Chips to Produce ‘Billions’ in ’27

Summary

Bloomberg Intelligence's Mandeep Singh discusses memory chip stocks, highlighting an oligopoly that keeps prices elevated and benefits Micron, Seagate, and Western Digital. He also downplays Qualcomm's data center chip deal with Meta, citing the dominance of Nvidia and Google TPUs. The conversation touches on Micron's upcoming earnings as a catalyst for capacity signals.

• Memory chip companies enjoy an oligopoly that restricts supply, keeping prices elevated.
• The shift from AI training to inferencing significantly increases memory demand per GPU.
• Micron, Seagate, and Western Digital have surged but face demand destruction risk if capacity doesn't expand.
• Micron earnings are watched for CapEx guidance as a signal for future supply.
• Qualcomm's data center chip win with Meta is seen as insufficient to challenge Nvidia and Google's TPU dominance.
• Nvidia and Alphabet remain the entrenched leaders in AI data center chips with a huge advantage.