jake silverman

AI workloads far more memory-intensive than past applications; hyperscalers signing long-term contracts to secure supply after years of memory capacity underinvestment; creates pricing power but also visibility demands from investors.

AI data center demand has fundamentally changed memory procurement from quarterly contracts to multi-year agreements through 2030; DRAM prices up 200-300% this year with no supply relief visible beyond 2027, forcing Apple and others to raise consumer prices.

AI workloads are far more memory-intensive than prior apps, forcing hyperscalers into long-term supply agreements; memory makers cannot add capacity fast enough despite record capex, creating pricing power but investor demand for visibility.