Caroline Hyde

I know we just started, but people are already looking there, really looking at,

What is this going to mean for their margins and how should we consider them on a valuation basis if you have this suddenly new increased cost in the form of higher memory chips?

There is an upside for someone, and that is the memory names themselves.

We were just cycling through the charts, right, on a one-year basis.

Some of those memory names are up hundreds of percent, some of them more than 1,000 percent.

This has changed the fortunes and also, I guess, the reputation of some of the names like SanDisk, Western Digital, Seagate, right?

Yeah, absolutely.

So historically, a lot of these companies traded at much lower multiples because they had a pretty shorter cycle in far as their boom and bust cycle goes.

So you would see something like a PC refresh cycle or an iPhone or smartphone upgrade cycle, and you would see a little bit of a boost in the memory prices and then you'd see it fall back again and you'd see the stock sort of reacting along that sort of cadence.

But now you have these new customers, all these hyperscalers, all of this money that's being spent on AI that is really change the kind of equation.

the kind of cycle that these companies are operating under.

So you've really seen just so much growth coming out of these companies, and really, so far, it doesn't seem like it's going to stop anytime soon.

It seems like memory prices are continuing to be biased upwards, and that just has people being very optimistic about their prospects from here, especially since a lot of these companies continue to trade at a discount to your NVIDIAs of the world and so forth.

Randall Stelica, always with some of the most read stories.

Thank you very much.

Let's get a market analysis now.

Ipek Oshkodeshkaya is with us, senior analyst over at Swissquote.

And what's really interesting, you've been thinking about some of these bottlenecks and we think memory is one.

We've been thinking about how infrastructure is one of them as well.

We're thinking about how power is to Ipek.