Caroline Hyde

as well.

So the demand remains strong, but building these chip plans and building the data centers requires confidence, and the confidence, the supply of confidence is unfortunately not infinite.

So that is going to be a bottleneck, and that's going to be a capacity constraint that could eventually become a headache for the sector and the growth expectations.

If I showed you a long-term chart of memory spot pricing, it would be for a number of years basically steady only because of the severity and the surge in the last month.

At this juncture, do we need to start talking about the impact of memory, you mentioned energy as well, on inflation and have a more economic discussion about what this shock, this bottleneck is causing?

Well, obviously, there are now rising worries about the fact that all of this AI demand and resources being limited is going to start pushing prices higher.

For the memory chips, we're talking about very big numbers.

I mean, 30% rise only last quarter, according to Samsung's report earlier this month.

And as Ryan also said, I mean, this is a very important component of hardware companies, and it will eventually start pressuring their profit margins and lead to price pressures.

Now, the question is, how much of these costs, of these additional costs, will be pushed onto the end customers?

The reality is that we do not know, but the higher the demand, the higher...

the prices are going to be going up and the higher the pressure will be on the profit margins.

There, the competition is going to be important.

The higher the competition, the bigger the impact on profit margins.

And these companies will not be able to push the prices too high because, well, then there will be implications on the demand side.

The memory bottleneck, is that going to be the talking point of this technology earnings season?

Well, yes, I think that is going to be one of the major talking points, along with energy and the metal prices as well.

All of these input prices are rising.

The other thing that we will be really watching very closely in this earnings season is obviously the headline numbers.

But not only, we will be also looking very closely into how the revenues are being booked and how the loans are also being booked in order to...