Doug O'Loughlin

When you have a bad memory cycle, pretty much your desire to spend on new capital equipment or new

um fab uh fab like clean room space is very low and so pretty much no one wanted to spend because they're burning all this money and then boom a giant demand vector had uh hit the industry and so now everyone's kind of racing to invest in supply but there's literally no supply for the next two years and so you have that perfect supply demand mismatch and that's the reason why memic crisis have gone up a hundred percent and it's like it's going to hurt most basic consumer

consumer products like your phone, for example, the price in your phone of the DRAM, even the NAND, the DRAM specifically is going to go up like 100%.

And so that's kind of this crazy dynamic that's happening because of AI.

AI is just demanding so much memory that it's kind of, you know, completely throwing the supply to NAND and now it's off.

Yeah, for sure.

It will definitely increase the price of consumer goods.

Honestly, we think the it's kind of crazy because, you know, we do some here, some analysis.

We do actually do like a lot of work.

Maybe this is a little bit of a rabbit hole.

We do a lot of work on the energy pricing side of things, too.

Ironically, most of the energy pricing that you're seeing in the grids, like essentially what is recognized the consumer is actually the past few years of investment.

Honestly, given how much demand there is, I think most of the energy prices so far have very little AI to do with it.

But the energy prices down the pipeline, now that's all AI.

So it's kind of interesting.

You're already seeing these price increases.

And this is even before the true demand vector came in.

That's a complete side, kind of like a side tangent.

But yeah, that's really what happened.

There was essentially no supply.