AI Chip Mania Sows Seeds of Its Own Destruction

1. 1. Investing in artificial intelligence currently hinges on a strong belief that traditional market cycles and limitations will not apply this time.
2. 2. Memory-chip makers, particularly Micron Technology, exemplify the extreme profitability and rapid turnaround fueled by surging AI demand.
3. 3. Micron Technology is now forecast to become the sixth-most profitable U.S. stock, a dramatic turnaround from its biggest-ever loss just three years prior.
4. 4. Micron is projected to generate nearly $100 billion in revenue over the next 12 months, outperforming major corporations like Meta or Berkshire Hathaway.
5. 5. The success of Micron and its competitors stems from runaway AI demand and soaring prices for high-bandwidth memory (HBM).