These people are the main reason why AI companies have unlimited funding, and can afford to buy global RAM supply for years in the future despite their expenses exceed revenue by billions.
Can't afford thing? Gamble on stock market instead.
Ridiculous argument that already rich people make.
Shorting doesn’t only require you to be right. It requires perfectly timing when the market will realize you’re right.
When and how that transition happens is subject to a number of complex factors, and it's not even necessarily the case that incremental drops in the stock will produce incremental gains for your put option.
"IV crush" is an especially strange objection in this context. IV crush matters when you buy options at elevated implied volatility and that volatility collapses. If Micron suddenly drops hundreds of dollars because the alleged bubble is bursting then the implied volatility would sharply rise, which makes your put more valuable, not less. Invoking "IV crush" here mostly makes it sound like you've heard the terminology without thinking through how it actually applies to the scenario you're describing.
If you genuinely think Micron is going to collapse sometime over the next two or three years because this entire RAM shortage is an overhyped bubble, then the obvious trade is to buy puts around where you think the stock should return to once that bubble disappears. Micron wasn't remotely a $1000 stock before this run. We can be generous and use a $300 strike since even though that's still 100% higher than Micron's price prior to this run-up, it gets the point across.
A long dated $300 put is currently around $7 per share, so one contract costs roughly $700. If Micron eventually falls to $200, that contract is worth $10000 at expiry. At $100, it's worth $20000. If the crash happens well before expiry, it can be worth even more than its intrinsic value because there's still time value left.
If you're claiming to be certain that a gigantic bubble is going to burst and wipe hundreds of dollars off the stock price, there are long dated far out of the money puts specifically capable of expressing that position. Pointing at an expensive $1000 strike put and saying "look, options are complicated" is just a weird or rather superficial misunderstanding of some financial concepts.
Anthropic net loss in 2025 was $42 bln, OpenAI $38.5 bln. Both are spending enormous amounts with no obvious path to profitability.
I would try to solve this by making the market structure reflect the underlying difficulty: we have to decide what capacity to produce years in advance, to construct the memory fabs. So this should be a futures market, and a capacity crunch would affect short-term-futures, but leave full term futures at the same price. Because the companies supplying the memory can just construct more capacity to fill those futures at the same cost regardless of the AI demand.
Since almost everybody is a consumer of those companies, I do suggest we reuse the governance system we have that solves other "everybody problems".
Same way nVidia did through the crypto insanity - make sure they're supplying enough to the consumer market so it doesn't get completely destroyed and pulls down the other parts of the consumer market they're reliant for long term success.
> Should we blame this on memory companies or the AI companies bidding for memory?
Blame doesn't change the outcomes, neither does it improve the negative consequences. Think in terms of "what does destruction of our consumer market mean for my prosperity?" not "oh, how do defend poor companies again?"
The question of choice between a profitable vs unprofitable venture is easy. But yeah, to what extent is choosing profitable instead of VERY profitable a breach of duty to shareholders?
> Contrary to what many believe, U.S. corporate law does not impose any enforceable legal duty on corporate directors or executives of public corporations to maximize profits or share price. The economic case for shareholder-value maximization similarly rests on incorrect factual claims about the structure of corporations, including the mistaken claims that shareholders “own” corporations, that they have the only residual claim on the firm’s profits, and that they are principals who hire and control directors to act as their agents.
[0] https://corpgov.law.harvard.edu/2012/06/26/the-shareholder-v...
The shareholders own the company. It is their property. They paid for it, they own it, and likewise they can do whatever they want with it.
It would be crazy if I proposed you let me drive your car to work everyday. Why? Because you own your car, it's your property, and it works for your own interest. Basically every human agrees with this logic, but somehow "the company is just focused on pleasing shareholders" escapes this.
It's more like voting for public officials. Shareholders can vote to fire a CEO if they feel he's not acting in their best interests no mattter if that's the case or not.
Raid your own assets, cut costs manically so you can have a few splendid quarters with stock buyback bonanza or focus on long term value creation, which a lot of times involves giving at least a passing tought to other stakeholders such as client and employees?
The getting was great for some time for HP shareholders under Fiorina, or GE shareholders under Welch. Lots of them left the sinking ships at the right moment, but I bet that lot of the others left holding the bag, would have preferred having bought AAPL.
avoiding the destruction of good faith with consumers is a legitimate business interest
memory companies could have attempted to protect consumers, at least a little, but the AI money machine goes brrrr
Well if your thesis is that they should have acted differently, then we should blame the laissez-faire capitalists.