Ross Gerber Says AI's Chip Crunch Is Simple Math: 'We Can't Have Robots and Robot Cars Without Lots More Chips'
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Investor Ross Gerber said rising memory-chip prices reflect a simple reality: artificial intelligence, robots and self-driving vehicles require far more computing hardware than companies can currently supply.
Gerber Links Chip Demand To AI Growth
"It’s pretty simple. We can’t have robots and robot cars without lots more chips," the Gerber Kawasaki chief executive wrote on X. "Ask 10 people on the street if they use AI. Almost all do already."
Gerber said AI makes him "10x more efficient" at work and has helped nonprogrammers at his firm build custom financial software using Anthropic’s Claude. "We’ve already built crazy things on Claude," he wrote. "I love AI."
His comments extend a bullish position he recently took after a semiconductor selloff, which he called a "gift" for long-term investors. He has also argued that Micron Technology, Inc. (NASDAQ:MU) remains undervalued as AI spending lifts memory-chip demand.
Memory Shortage Could Stretch Through 2028
Reuters reported this week that SK Hynix Inc. (NASDAQ:SKHY) expects the tightest memory shortage in 2027, while UBS forecasts supply may remain below demand until at least the second quarter of 2028. Nvidia Corp.‘s (NASDAQ:NVDA) CEO Jensen Huang has said shortages of advanced AI memory could persist for years.
Samsung Electronics Co., Ltd. (OTC:SSNLF) said Thursday that the shortage could continue through 2028 as major data-center customers sign long-term supply agreements. The company posted record quarterly profit as demand surged for high-bandwidth memory, which helps AI processors handle large amounts of data.
Consumer Costs Rise As Factories Shift
The squeeze is spreading beyond data centers. U.S. automakers, retailers and electronics groups warned in June that AI infrastructure could raise memory costs for cars, smartphones and other consumer products. Manufacturers have shifted factory capacity toward more profitable AI memory, reducing supplies of conventional chips used in everyday devices.
Samsung, SK Hynix and Micron are prioritizing AI products as some memory prices rose several-fold. Micron has said humanoid robots could eventually carry about 10 times as much memory as a typical partially automated vehicle, creating a potential multidecade market.
Gerber said investors still underestimate AI’s staying power. "The fact that the market is absolutely doubting the durability of one of the most impactful technologies ever … is a gift for investors that won’t last very long," he wrote.
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