AI infrastructure beyond chips (with Ed Ludlow)

The AI story remains intact with growing capex spending. Beyond memory and networking, the base level of infrastructure is electricity, which will see tremendous demand. The US has a competitive advantage in low-cost electricity. Memory companies like Micron show 85% gross margins, indicating severe undersupply. SK Hynix's potential US ADR listing is welcome as it expands the investable AI infrastructure universe.

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Rob Fummel 8.5

AI infrastructure beyond chips (with Ed Ludlow)

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The AI story is still here. It's intact and it's going to continue growing and we continue to see CapEx spending growing.

Ed Ludlow

The Philadelphia Semiconductor Index is likely to have its best quarter ever with an 86% gain over three months.
Rob Fummel

The AI story is still intact and will continue growing with capex spending. The opportunity is in infrastructure including memory, but the base level is electricity which will see tremendous demand.
Rob Fummel

If capital spending continues to grow at 20-30-40% rates, infrastructure, memory, and storage demand will mirror that growth at 20-30%, along with liquid cooling and network switches.
Rob Fummel

Inside the data center, we're more positioned on memory because Micron posted 85% gross margins, higher than Nvidia's, showing the memory market is severely undersupplied.
Rob Fummel

SK Hynix's potential US ADR listing is welcome as it expands the investable AI infrastructure universe and we will take a very close look at it.

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