Chip Stocks Surge Amid Production Constraints and AI Demand Boom
Jim Cramer highlighted a critical bottleneck in semiconductor production during his CNBC segment, noting that equipment shortages are preventing rapid expansion. Micron Technology's 7.76% stock surge on Friday underscores the market's reaction to these constraints. CEO Sanjay Mehrotra emphasized unabated AI-driven demand, stating, 'We need more and more memory to address that demand.' The company's $200 billion U.S. investment plan, including a 600,000-square-foot New York facility, reflects long-term capacity ambitions.
The CHIPS Act enables domestic expansion, but construction timelines mean shortages persist. Western Digital, Seagate, and other chipmakers are similarly capitalizing on the supply-demand imbalance. This isn't a sudden crisis—warning signs emerged last year as capacity failed to match accelerating AI infrastructure needs.
