Video | 'Buffett of Tech' Cathie Wood: The current surge in semiconductor prices is more cyclical than secular

ARK Invest founder Cathie Wood expressed her pessimism towards the current hot memory stock sector during her appearance on the podcast show Insightful Investor. She believes that memory is the most cyclical and commodity-like part of the semiconductor industry. While the soaring prices of high-bandwidth memory may seem beneficial to manufacturers, in the tech industry, such price surges often attract capital inflows and force companies to seek alternative solutions through engineering. Wood mentioned that companies like Cerebras and Groq have already reduced their reliance on high-bandwidth memory. Therefore, she thinks that the current memory industry's high boom may not be sustainable in the long run. Rather than chasing profits from price hikes, she is more interested in who can innovate technologically to bring down the cost of expensive memory requirements.