Citi forecasts severe memory undersupply through 2031, with HBM demand surging 62% in 2027 and 69% in 2028, while DRAM and NAND supply growth will lag demand, creating deficits of 8-10%. A commentator argues that AI labs underestimated efficiency improvements in model architectures and training techniques, which could significantly reduce semiconductor demand growth projections.
X users discuss stablecoin infrastructure development, highlighting Spark Finance's shared liquidity FX layer that has processed $10B+ in volume since June 2026, enabling multiple stablecoins (RLUSD, USDC, USDT, PYUSD) to compete at the asset layer while cooperating on liquidity. Ethena's USDe expands to TRON network with cross-chain bridging via Stargate Finance, reflecting broader adoption of stablecoin ecosystems.
DeepSeek's V4.1-Flash model reduces HBM requirements by 75% and storage needs by 87.5% through improved KV cache efficiency, initially pressuring memory stocks. However, the analyst argues this reflects optimization rather than reduced AI demand—lower per-token costs should drive increased usage across inference, agent deployment, and context length, potentially sustaining overall semiconductor demand growth.
Oracle reported strong AI infrastructure growth with 121% cloud growth and $664 billion backlog, adding $30 billion in new AI Cloud contracts. However, the stock initially surged 6% then retreated as investors focused on massive capital expenditure of $28.5 billion in a single quarter and negative free cash flow of $5.4 billion, with annual CapEx guidance of $90-95 billion.