Micron Blows Past $1 Trillion on AI Demand

Summary

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.