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AI Has Changed the Old Memory Math

Summary

  • The business is benefiting from a structural shift where memory is becoming central to AI performance, not just a commodity component, and demand is being locked in years ahead through long-term supply agreements.


  • Recent results show strong pricing power and margin expansion, with growth coming from multiple segments including cloud, mobile, and automotive, not just a single AI-driven spike.


  • Despite record earnings and aggressive forward guidance, the stock still trades at a meaningful discount to peers on forward earnings, PEG, and EV/EBITDA, suggesting the market is still pricing in an outdated cyclical narrative.


  • The main risk remains the classic supply-demand imbalance in memory markets, along with rising competition in high-value segments, which could pressure pricing if capacity ramps too quickly.


Close-up of four green RAM sticks installed in a computer motherboard. Visible microchips and text, creating a tech-focused mood.
Memory Chip

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