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Gavin Baker is a leading AI investor who has generated major outperformance.
Baker was among the first to predict the massive moves in memory stocks like Micron.
Unlike the fiber-optic bubble of the late 90s, AI infrastructure is being deployed immediately.
Who is Gavin Baker?
Gavin Baker is the Chief Investment Officer (CIO) and Managing Partner of Atreides Management, a hedge fund with ~$7 billion in assets under management (AUM). Prior to his current role, Baker was a top-performing fund manager at Fidelity, where he earned a reputation for having a deep understanding of the complex semiconductor architecture and tech infrastructure markets.
Atreides Management is a Top Tech Fund
Although most of Wall Street has finally uncovered the AI trade, Gavin Baker was early and correct on many AI trades, including those in Astera Labs ((ALAB - Free Report) ),NVIDIA ((NVDA - Free Report) ), and Coherent ((COHR - Free Report) ). Meanwhile, Baker and Atreides also recently scored a windfall from the recent Cerebras ((CBRS - Free Report) ) IPO. Baker’s knack for finding AI stocks early has led to dramatic outperformance for Atreides over the past few years.
Image Source: Hedge Follow
Gavin Baker Recommended the Memory Trade Early
Perhaps Baker’s most impressive call was on the memory trade. In late 2025, Baker’s 13F filing (required for firms with $100M or more in AUM) showed that he increased his firm’s position in memory-related names such as SK Hynix, SanDisk ((SNDK - Free Report) ), and Micron ((MU - Free Report) ). Each of these stocks has delivered triple-digit gains in 2026 thus far.
Image Source: Zacks Investment Research
Gavin Baker Reveals His Latest Thoughts on the Memory Trade
Last month, Micron delivered one of the most impressive earnings reports in recent memory, producing 345% year-over-year revenue growth and blasting past Wall Street EPS expectations.
Image Source: Zacks Investment Research
Luckily for investors, Gavin Baker is one of the most transparent money managers on Wall Street and provided his latest thoughts on the memory trade in a recent “All-in Podcast” appearance. Baker provided four key reasons that the memory crunch will continue, including:
1. The Hardware Bottleneck: Baker highlighted that consumer hardware giant products like Apple ((AAPL - Free Report) ) no longer have the memory capacity required to run AI models locally. As a result, companies like Apple will require more dynamic random-access (DRAM - Free Report) from memory providers like Micron.
2. Cycle Differences: According to Baker, historically, now would be the time to sell memory stocks given their valuations and cyclical nature. However, Baker draws a contrast between the current semi cycle and previous cycles because TSMC ((TSM - Free Report) ), a key semi supplier, is keeping its capacity constrained and disciplined. In other words, the typical oversupply glut that crashes memory prices do not currently exist.
3. The Agentic AI Boom: Baker notes that Agentic AIis growing rapidly and will require complex orchestrations, tool calls, and massive memory retrieval.
4. No “Dark Fiber”: The internet boom of the late 1990s provided clues of a bubble. For instance, the fiber-optic buildout eventually had 99% of its capacity unutilized and was fueled mostly by debt. Conversely, the memory and processing chips are largely funded with cash flow from highly profitable hyperscalers and are deployed almost immediately.
Micron: Wall Street Expects Explosive Earnings Growth
Wall Street analysts tracked by Zacks concur with Baker’s bullish outlook for the memory industry. For instance, Micron earns a Zacks #1 (Strong Buy) ranking, and analysts expect triple-digit EPS growth through next year.
Image Source: Zacks Investment Research
Top Memory Stocks Retreat to Buy Zones
SanDisk, Micron, and the Roundhill Memory ETF ((DRAM - Free Report) ) are each retreating to the 10-week moving average. Over the past few years, this technical level has produced juicy returns. For instance, if you bought SNDK shares off the 10-week moving average, you more than doubled your money in the past two instances.
Image Source: TradingView
Bottom Line
Gavin Baker’s architecture-first investing approach underscores a critical reality for investors: the AI revolution is only as fast as its physical constraints. The overwhelming weight of evidence suggests that the structural tailwinds of constrained supply and localized device demand remain firmly intact.
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Image: Shutterstock
Unpacking Gavin Baker's "Memory Crunch" Thesis
Key Takeaways
Who is Gavin Baker?
Gavin Baker is the Chief Investment Officer (CIO) and Managing Partner of Atreides Management, a hedge fund with ~$7 billion in assets under management (AUM). Prior to his current role, Baker was a top-performing fund manager at Fidelity, where he earned a reputation for having a deep understanding of the complex semiconductor architecture and tech infrastructure markets.
Atreides Management is a Top Tech Fund
Although most of Wall Street has finally uncovered the AI trade, Gavin Baker was early and correct on many AI trades, including those in Astera Labs ((ALAB - Free Report) ), NVIDIA ((NVDA - Free Report) ), and Coherent ((COHR - Free Report) ). Meanwhile, Baker and Atreides also recently scored a windfall from the recent Cerebras ((CBRS - Free Report) ) IPO. Baker’s knack for finding AI stocks early has led to dramatic outperformance for Atreides over the past few years.
Image Source: Hedge Follow
Gavin Baker Recommended the Memory Trade Early
Perhaps Baker’s most impressive call was on the memory trade. In late 2025, Baker’s 13F filing (required for firms with $100M or more in AUM) showed that he increased his firm’s position in memory-related names such as SK Hynix, SanDisk ((SNDK - Free Report) ), and Micron ((MU - Free Report) ). Each of these stocks has delivered triple-digit gains in 2026 thus far.
Image Source: Zacks Investment Research
Gavin Baker Reveals His Latest Thoughts on the Memory Trade
Last month, Micron delivered one of the most impressive earnings reports in recent memory, producing 345% year-over-year revenue growth and blasting past Wall Street EPS expectations.
Image Source: Zacks Investment Research
Luckily for investors, Gavin Baker is one of the most transparent money managers on Wall Street and provided his latest thoughts on the memory trade in a recent “All-in Podcast” appearance. Baker provided four key reasons that the memory crunch will continue, including:
1. The Hardware Bottleneck: Baker highlighted that consumer hardware giant products like Apple ((AAPL - Free Report) ) no longer have the memory capacity required to run AI models locally. As a result, companies like Apple will require more dynamic random-access (DRAM - Free Report) from memory providers like Micron.
2. Cycle Differences: According to Baker, historically, now would be the time to sell memory stocks given their valuations and cyclical nature. However, Baker draws a contrast between the current semi cycle and previous cycles because TSMC ((TSM - Free Report) ), a key semi supplier, is keeping its capacity constrained and disciplined. In other words, the typical oversupply glut that crashes memory prices do not currently exist.
3. The Agentic AI Boom: Baker notes that Agentic AIis growing rapidly and will require complex orchestrations, tool calls, and massive memory retrieval.
4. No “Dark Fiber”: The internet boom of the late 1990s provided clues of a bubble. For instance, the fiber-optic buildout eventually had 99% of its capacity unutilized and was fueled mostly by debt. Conversely, the memory and processing chips are largely funded with cash flow from highly profitable hyperscalers and are deployed almost immediately.
Micron: Wall Street Expects Explosive Earnings Growth
Wall Street analysts tracked by Zacks concur with Baker’s bullish outlook for the memory industry. For instance, Micron earns a Zacks #1 (Strong Buy) ranking, and analysts expect triple-digit EPS growth through next year.
Image Source: Zacks Investment Research
Top Memory Stocks Retreat to Buy Zones
SanDisk, Micron, and the Roundhill Memory ETF ((DRAM - Free Report) ) are each retreating to the 10-week moving average. Over the past few years, this technical level has produced juicy returns. For instance, if you bought SNDK shares off the 10-week moving average, you more than doubled your money in the past two instances.
Image Source: TradingView
Bottom Line
Gavin Baker’s architecture-first investing approach underscores a critical reality for investors: the AI revolution is only as fast as its physical constraints. The overwhelming weight of evidence suggests that the structural tailwinds of constrained supply and localized device demand remain firmly intact.