This Semiconductor Stock Could Be at the Center of the Artificial Intelligence Spending Boom

Group 1: AI Infrastructure and Capital Expenditure - The artificial intelligence (AI) infrastructure boom is ongoing, with Taiwan Semiconductor Manufacturing (TSMC) significantly increasing its capital expenditure budget, indicating early stages of growth [1] - TSMC faces risks of overbuilding, which could lead to underutilized facilities, crushing gross margins and resulting in unprofitable operations [1] Group 2: Memory Component Demand - Micron Technology is positioned to benefit from the AI infrastructure boom, as the demand for high-bandwidth memory (HBM) is rising due to the need for optimal GPU performance [3][4] - The HBM market is expected to grow at a 40% compound annual growth rate (CAGR) through 2028, with Micron's current HBM supply already booked for the year [5] - Approximately 80% of Micron's revenue comes from the DRAM market, with the remaining 20% from NAND flash memory, both of which are currently in short supply [6]