Cathie Wood on Avoiding SK Hynix and Micron: Rising Memory Prices as a Warning Signal

08/19 06:55

On August 19, Ark Invest CEO Cathie Wood stated that she is avoiding investments in AI chip stocks that rely on memory, instead favoring companies like Cerebras Systems and Groq, which are developing AI chips that do not require high-bandwidth memory. She described the memory shortage driving up prices as a warning signal rather than a reason to invest. In a podcast, Wood explained why Ark does not hold storage-related stocks, arguing that high-bandwidth memory is the most cyclical and easily commoditized segment of the semiconductor supply chain. She noted that price increases of three, four, or even ten times are 'not normal' and should be viewed as negative signals rather than positive. Wood compared this phenomenon to Tesla's elimination of cobalt in battery design to avoid supply chain bottlenecks, stating that the chip industry is now 'designing technology to break free from dependence on high-bandwidth memory.'
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