Dylan PatelFounder and Chief Analyst, SemiAnalysis · The semiconductor-AI stack

Memory LTAs = Top? Not This Time

3 Apr 2026 · 1 min

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GPU rental prices are climbing and hyperscaler stocks are tanking because AI infrastructure is bottlenecked everywhere. TSMC's N3 process node is sold out through 2027, creating a capacity crunch that will constrain AI hardware for years.

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I think the AI infrastructure supply chain is constrained at almost every layer. And then obviously with the big article today, that's sort of the conclusion of the choke point is that we're seeing higher GPU rental prices, right? So I think, and then it's pretty interesting if we look at the price action for stocks as well, like people don't like the spenders, like the hyperscalers, they're all down. Big year to date, and then people are trying to buy whatever you know has the biggest shortage. So I think from at least from my side, and then Nigel and Nick feel free to jump in and and then add on your coverages as well. I think TSMC N3 is you know where everything starts. That is the biggest shortage. You know it's sold out through 2027.