Memory Is the Cheapest Layer of the AI Stack
Everyone is saying memory is “too cyclical” to own. 🤔
Meanwhile it’s the cheapest layer of the AI stack. $DRAM
The receipts (forward P/E):
💾 $SKHY 3.0
💾 $KXIAY 3.9
💾 $SNDK 4.0
💾 $MU 4.2
Memory average: 3.8x.
The rest of the stack ($NVDA $AVGO $AMD $TSM $VST $CEG $GEV $VRT $BE $LITE $CRDO $AAOI) averages 21.6x. That’s more than 5x the multiple.
Samsung just said its entire 2027 HBM supply is sold out. Micron has more than 75% of 2027 output committed and says supply gets tighter in 2027 AND 2028. TrendForce sees HBM prices +121% next year.
Sold out for a year and priced like it’s going out of style.
AI is a stack. Every GPU ships with memory. Own what they’re forced to buy. 😎
Not FA. DYOR.
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2118036805476110753
