Trump tolerated soaring memory costs as long as the AI supercycle meant hundreds of billions in capex would push up GDP and stonks even if it boosted the GDPs of China/Taiwan/Korea.

The headline, sourced from Zerohedge, asserts that the Trump administration tolerated rising memory chip costs because AI-driven capital expenditure was expected to lift U.S. GDP and equity prices, even though some of that spending would benefit China, Taiwan, and South Korea. It further suggests a shift in that calculus following the midterm elections and a reported dispute involving Nvidia CEO Jensen Huang, though the truncated text does not specify the nature of that shift. The transmission mechanism here runs through the terms-of-trade and capex channel: hyperscaler and data-center spending raises demand for DRAM, HBM, and NAND, which tightens supply, lifts memory prices, and pushes hardware costs higher for downstream buyers while boosting revenues for Asian memory and foundry producers. Most directly exposed are memory and semiconductor equities in Korea and Taiwan, U.S.-listed AI hardware names, and U.S. equity indices weighted toward AI infrastructure, with consumer electronics makers facing margin pressure from input costs. The next concrete catalyst to watch is the Micron fiscal quarterly earnings

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