Tim Cook, Elon Musk, Andy Jassy, and Jensen Huang All Just Warned Investors About the Same Thing. Spoiler Alert: It's Fantastic News for Micron and Sandisk.
During their recent earnings calls, big tech CEOs spoke extensively about the rising cost of memory.
Overview
Earnings season is just about wrapped up, and for the artificial intelligence (AI) crowd, the script was unusually consistent. Four of the most powerful companies in the technology world spent meaningful airtime during their earnings calls talking about one input to the cost structure: memory.
Not models. Not load power. Not even graphics processing units (GPUs), at least not at first. High-bandwidth memory (HBM), DRAM, and NAND were in the spotlight during various earnings calls. In a way, this is ironic, as these products used to be viewed as common commodities. Now, CEOs are treating memory and storage like scarce precious metals.
Details
The story is straightforward: The companies writing the biggest checks just told investors that memory prices are still going up, supply remains tight, and they are going to keep spending anyway. For investors who own shares of Micron Technology (NASDAQ: MU) or Sandisk (NASDAQ: SNDK), this should be music to your ears.
Source
Originally published at www.fool.com.