Move Over Nvidia. This Is the New Top AI Stock to Buy.

For most of the AI boom, investors have been fixated on GPU makers and hyperscale cloud players. This has been an incredible trade. Yet, according to a recent Jefferies note, the AI investment cycle is no longer in its expansion phase. It’s entering the phase where pricing power and capital discipline are more important than simply having the best computing platform.

In fact, according to Jefferies analyst Christopher Wood, memory makers are now the new chokepoints in the AI ecosystem. This is because AI workloads are moving from experiments to production inference. As such, there has been a sudden surge in the need for high-end memory and storage solutions. This is already evident in rising memory prices and the stock price performance of the leading memory makers.