Buffett disciple Pabrai said the semiconductor party is just getting started, but he himself missed out on $2 billion by prematurely clearing his position in Micron.

The value investor built a position in Micron in 2017, cleared it in September 2023 for only a double, after which Micron rose more than 15 times. SK Hynix also exited too early.
He admitted violating his own principle of "always hold."
For the crypto market, the inspiration from this interview lies not in Micron itself, but in two structural issues:
First, the AI hardware cycle is still in its early stages, but the market has started pricing in "when the party will end." Bank of America strategists warn that AI spending may be unsustainable, and defensive sectors could become winners. The deeper the resonance between the crypto market and AI hardware, the greater the risk of correlation during pullbacks.
Second, Pabrai advises over 99% of ordinary investors to buy indices. In the crypto market, this translates to the increasing difficulty of actively picking coins to outperform BTC. The altcoin season has disappeared, capital rotation logic is being restructured, and most altcoins' long-term performance fails to beat BTC or ETH, or even goes to zero.
Currently, Micron is up nearly 18% pre-market, but its customers (Hyperscalers) are generally falling. The gap between supply chain price increases and downstream cost pressure is widening. If the crypto market only focuses on the storage chip price hike narrative and ignores whether end demand can absorb it, it is easy to amplify drawdowns in the resonance.
Pabrai's regret reminds us of one thing: in structural cycles, holding on is harder than precise timing. But the prerequisite is to hold the right assets.
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