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.

The comments place China’s expanding chip capacity at the center of the outlook for traditional memory-chip manufacturers, while Wood continues to favor avoiding the segment.