ByR. Scott Raynovich,
Contributor.
After a red-hot inflation report this week that showed the annual consumer price index rising to 3.8%, affordability is on people’s minds. But plain-old consumer inflation pales in comparison to the inflation in data centers.
In the technology markets, inflation is all over the place, most notably in the stratospheric rise in technology components such as memory and storage devices, sales of which are driven by the AI capital spending boom. This is driving inflation in stock prices as well, as memory stocks such as Micron and Sandisk lead the current rally.
The key building blocks of data centers, including memory, storage, and AI, have been vaulting higher at rates as high as 90% per quarter. This has been a boon for memory companies such as Micron, whose stock has shot up 1,100% in three years.
