AI demand is starving the market for memory chips — ride the Micron rally
Micron, a company that makes critical computer memory, just saw its stock surge due to explosive demand for artificial intelligence technology. Meanwhile, major financial institutions like JPMorgan are telling clients that tech and AI companies still have plenty of room to run higher.
Idea
The artificial intelligence boom requires massive amounts of specialized computer chips and memory, and the companies supplying those parts are seeing real, explosive sales growth. JPMorgan Asset Management notes that the AI supply chain still has strong upside potential. Buying the companies that build the actual hardware for AI is a way to invest in the trend without paying the massive premiums of the software companies. We expect this sector to keep climbing as the build-out of AI data centers accelerates.