Memory chip shortage is here to stay — buy the dip on AI hardware stocks after the tech sell-off
Memory chip makers are seeing unprecedented demand and soaring stock prices, but that is making devices like iPhones and Macs more expensive to build. As Apple hikes consumer prices and a broader tech sell-off drags chip stocks down, there is a strong opportunity to buy the chip makers powering the AI boom at a temporary discount.
Idea
Micron's blowout earnings confirm a $100 billion wave of AI memory demand, yet a broader global tech sell-off is dragging Micron, Nvidia, and SanDisk down indiscriminately. This panic is spilling over into device makers like Apple, who are being forced to hike consumer prices just to cover rising memory costs. Because the underlying demand for AI infrastructure remains massive, this market-wide rout offers a classic dip-buying opportunity for the memory chip suppliers at the center of the boom.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| SNDK | LONG | +0.00% ✗ | -2.80% ✗ | — |
| MU | LONG | +0.00% ✗ | -8.84% ✗ | — |
| WDC | LONG | +0.00% ✗ | +2.03% ✓ | — |
Price change since publication · updated Jul 15
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News sources
- Micron Soars 17%, SanDisk Jumps 15%, Western Digital Climbs 13% After Blowout Quarter Locks In $100B of AI Memory Demand — Yahoo Finance
- Stock Market Today: Nasdaq Slides Amid Global Technology Sell-Off; Micron, Nvidia, Sandisk Fall (Live Coverage) — Investor's Business Daily
- Apple stock gets slammed on bigger Mac, iPad price hikes. Why it can weather the storm — CNBC