Cloud Investments are Sizzling Hot
Author: Louis Tran
Semiconductor equipment order activity increased to 71 °F. Memory continues its leadership in the recovery. Prices are rising steadily as the output reductions is restoring the supply and demand equilibrium. DRAM ICs, in particular, are witnessing a surge in demand owing to AI and HBM.
The AI semiconductor chip fever shows no sign of cooling down 3 quarters after Nvidia’s explosive growth. The top cloud service providers have announced their Q4 results, and their capex surpassed our projections. The supply of AI infrastructure is still lagging the demand while the semiconductor manufacturers are working to resolve the AI capacity bottlenecks.
