Seagate leads memory sell-off as CEO says it would 'take too long' to build new factories
Seagate's CEO highlighted the challenges of building new memory chip factories amid soaring demand driven by AI investments. The company is focusing on maintaining predictability for clients while addressing long lead times in production. Additionally, CME Group is launching a new futures market for semiconductors to help traders manage rising prices.
- ▪Memory chip stocks have surged due to increased demand from AI investments.
- ▪CME Group is introducing a futures market for semiconductors to help traders hedge against price fluctuations.
- ▪Seagate's CEO emphasized the importance of maintaining predictability for clients amid long production cycles.
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Memory chip stocks have soared in recent months as a flood of AI investing has sent demand soaring, with the chips a key part of the AI buildout in data centers.Chip production cycles stretch over many quarters for a single unit, and investors are increasingly wary of how long the leading memory makers can capture demand. CME Group is launching a new futures market for semiconductors, allowing more traders to lock in prices and hedge against the rising prices of computing power.At Monday's conference, Mosely also addressed the "very long lead times" and maintaining predictability with its clients."We know what's coming out a year from now," he said.
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