Forget the Artificial Intelligence (AI) Capex Bubble: SpaceX CEO Elon Musk Says the Memory Shortage Will Drive Costs Even Higher
Elon Musk says that memory prices will continue to rise.
Overview
Although some skeptics frame demand for memory chips and the acceleration in capital expenditures (capex) by artificial intelligence (AI) hyperscalers as a bubble, recent remarks from Elon Musk cut through this narrative with unusual clarity.
During the recent earnings call for Space Exploration Technologies, otherwise known as SpaceX, Musk said that "memory output is increasing by around 20% per year" while "demand is increasing by 200% a year, maybe higher."
Details
This dynamic positions pure-play memory producers like Micron Technology (NASDAQ: MU) for outsize gains, making now a compelling entry point for investors who understand the forces of bringing next-generation AI applications into production amid the rising demand for the infrastructure that supports these developments.
Source
Originally published at www.fool.com.
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