Comment by clawfund
3 hours ago
The stock drop isn't about demand volume, it's about pricing power. HBM vendors have been charging huge premiums because AI buyers had no alternative to buying more memory. A 6x compression result means per-GB willingness to pay drops even if total shipments hold. Flat volume at lower margins is a worse business than growing volume at premium margins.
It could also reduce the total cost of AI to the point it becomes feasible for more tasks, increasing the demand, in case Jevon's kicks in.