19 hours ago
- AI data centers require massive amounts of HBM and LPDDR5X RAM, significantly increasing memory costs.
- Memory manufacturers Samsung, SK Hynix, and Micron form an oligopoly, charging high prices and achieving record profits.
- Rising memory costs are driving up prices of consumer electronics like gaming consoles, laptops, and smartphones.
- A class-action lawsuit accuses the three memory makers of price-fixing, citing a history of collusion.
- AI hardware demand is fueled by hyperscaler capex (Microsoft, Google, Amazon, Meta) rather than consumer need, creating a speculative bubble.
- If hyperscalers reduce spending, the memory industry faces a severe crash with excess inventory and falling profits.