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Memory chips function as the public market's closest proxy for AI infrastructure spending, with revenues tied directly to server unit volumes and data center capital expenditure.
CNBC host Jim Cramer said investors are already rotating out of the memory-chip winners from that buildout and into companies with growth that sits outside the data center cycle.
The derivative structure of memory demand is what made these stocks the AI trade. Every system commissioned for AI training or inference carries a memory specification.
Memory revenues therefore move with the number of systems being deployed, making them a concentrated bet on buildout rates.
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