Comment by glub
1 hour ago
tl;dr; This is existing production being redirected to HBM. Which means consumer market is going to get a lot worse.
And the worst thing is that is the best possible strategy for them. It's essentially win-win for everyone but consumers.
- Buyer (AI) has crazy money, so will pay whatever
- Seller doesn't have to build anything new, as the buyer is willing to pay whatever
- Generate ridiculous profits from crazy money
- No oversupply risk in case of reversal
- Return from producing HBM to DDR5 in a single quarter if reversal does happen.
Hold on to your existing hardware, people, and be on lookout for your local deals.
The solution would seem to be preventing that "Buyer (AI) has crazy money". They already have borrowed billions and are only generating losses so the money should run out. It just needs to be made sure that nobody (taxpayers) will rescue them.