I’ve been seeing more discussion around Micron and AI driven memory demand lately, especially tied to data centers and high performance computing. The argument seems to be that AI workloads are creating a more durable source of demand for DRAM and advanced memory, which could make this cycle different from past ones.
At the same time, memory has always been a highly cyclical industry. Supply discipline can look strong during upcycles, but history shows that capacity eventually catches up, pricing rolls over, and margins compress. Even with AI as a tailwind, it’s not obvious that the basic supply demand dynamics have fundamentally changed.
What I’m trying to figure out is whether AI demand truly smooths out the cycle or simply makes the peaks higher and the optimism stronger during upswings. If AI infrastructure spending stays elevated for years, memory could behave more like a secular growth input. If not, this could still be a familiar boom and bust with better headlines.
Curious how others here think about it from a longer term investing perspective rather than a short term trade.
Not financial advice.