Cathie Wood Warns China’s Memory Chip Expansion Could Increase Price Volatility

Cathie Wood is avoiding traditional memory-chip makers as China expands production capacity, warning that additional supply could increase price volatility in an industry marked by sharp boom-and-bust cycles. Wood, co-founder of ARK Investment Management, discussed the issue with investors in Hong Kong. Her position reflects concern that rising Chinese capacity could intensify supply pressure across the memory-chip market. Memory chips have historically experienced sharp boom-and-bust cycles as production capacity and pricing change. An increase in available supply can add pressure to prices when industry demand does not keep pace.

Source: TokenPost