Cathy Wood, CEO of Ark Invest, said she is avoiding investing in memory-dependent AI chip stocks and favoring companies such as Cerebras Systems and Groq, and said that memory shortages driving up prices are a warning sign rather than a reason to invest. Wood explained in a podcast program why Ark doesn't hold storage stocks, arguing that high-bandwidth memory is the most cyclical and easiest part of the semiconductor industry chain to commercialize. She said that the three-fold, four-fold, or even ten-fold price increase “is not normal” and should be viewed as a negative signal rather than a positive one. Wood likened this phenomenon to Tesla removing cobalt elements from battery design to avoid supply chain bottlenecks, adding that the chip industry is now “getting rid of its dependence on high-bandwidth memory through technical design.”

Cathy Wood, CEO of Ark Invest, said she is avoiding investing in memory-dependent AI chip stocks and favoring companies such as Cerebras Systems and Groq, and said that memory shortages driving up prices are a warning sign rather than a reason to invest. Wood explained in a podcast program why Ark doesn't hold storage stocks, arguing that high-bandwidth memory is the most cyclical and easiest part of the semiconductor industry chain to commercialize. She said that the three-fold, four-fold, or even ten-fold price increase “is not normal” and should be viewed as a negative signal rather than a positive one. Wood likened this phenomenon to Tesla removing cobalt elements from battery design to avoid supply chain bottlenecks, adding that the chip industry is now “getting rid of its dependence on high-bandwidth memory through technical design.”