sk hynix committed $38 billion to new chip plants, the ai capex story got a major reaffirmation

like two weeks ago the semiconductor trade was falling apart as tsmc reported 77% earnings growth and fell 4%,soxx had its worst week since 2020 and now

Sk hynix committed 54 trillion won ( $38.1 billion) to build two new memory fabs which are yongin y2 for next gen dram including hbm and cheongju m17 for nand flash and fyi this is board approved capital allocation running through 2031.

They explicitly said they dont view ai memory demand as a temporary and called it a structural transformation in which memory transcends its role as a mere component to become core infrastructure determining ai performance itself and this is coming from a company that holds 57% of the global hbm market and justifying $38 b in new capacity that wont even come online until 2028-2029.(i dont know what to say)

And this is after musk said spacex will build exclusively on Nvidia's vera rubin architecture, driving nvidia up 10% on the week.

ngl two weeks ago i felt market was in doubt about the ai capex cycle.

Micron is the obv secondary play here coz sk hynix commited capacity wont arrive until 2029 means the supply constraint thats been driving memory prices stays intact for at least three more years and micron with 21% hbm market share benefits from every month that new sk hynix capacity is still under construction.

What do you guys think is it madness atp or the demand is really insane?