Cathie Wood warns Chinese DRAM expansion could intensify memory market volatility
ARK founder Cathie Wood cautioned that new Chinese DRAM capacity may deepen the boom-and-bust cycles already affecting the memory chip sector.
Cathie Wood, founder and CEO of ARK Investment Management, warned investors that China's growing DRAM production capacity could worsen the already volatile memory chip cycle. In Hong Kong, she highlighted state-supported firms like CXMT Corp. as new competitors that will increase supply and heighten price fluctuations. Wood pointed out that established memory leaders—SK Hynix, Samsung Electronics, and Micron—have suffered significant stock drops this year.
While acknowledging a current shortage of high-bandwidth memory, she argued that additional Chinese output could destabilize pricing further. Wood also contrasted ARK's outlook on China's broader tech sector, deeming it less attractive due to lingering deflationary pressures. Finally, she rejected concerns that AI investment is overly speculative, emphasizing its potential to boost productivity and noting ARK's recent moves toward AI-centric companies such as Nvidia and Broadcom.
Why it matters
The warning signals potential increased risk for investors in memory chips as Chinese production ramps up.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 5 Analysts expect Samsung Electronics to post operating profit of about 108 trillion won, driven by strong memory chip sales.
- Oct 8 Samsung disclosed a third‑quarter operating profit of 107.4 trillion won.
- Oct 8 The market recorded a third straight day of losses.
- Oct 13 The decline continued a multi‑day slide in the index.
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