Micron and Its Memory-Chip Peers Are Riding the AI Surge. How and When It Could Turn Sour.

Core Viewpoint - Memory-chip manufacturers, including Micron Technology, SK Hynix, and Samsung Electronics, are experiencing significant growth due to the surge in demand driven by artificial intelligence applications. However, historical trends indicate that this growth may lead to overproduction and a subsequent market downturn [1]. Group 1: Industry Growth - Micron Technology is investing approximately $200 billion to expand its facilities in response to the booming memory-chip market [1]. - The demand for memory chips is being significantly fueled by advancements in artificial intelligence, positioning memory-chip makers as key beneficiaries in the tech sector [1]. Group 2: Market Risks - The rapid increase in production capacity among memory-chip manufacturers raises concerns about a potential oversupply in the market, which could lead to a painful crash similar to past industry cycles [1].