In trading strategy, news analysis refers to the measurement of the various qualitative and quantitative attributes of textual (unstructured data) news stories. Some of these attributes are: sentiment, relevance, and novelty. Expressing news stories as numbers and metadata permits the manipulation of everyday information in a mathematical and statistical way. This data is often used in financial markets as part of a trading strategy or by businesses to judge market sentiment and make better business decisions. News analytics are usually derived through automated text analysis and applied to digital texts using elements from natural language processing and machine learning such as latent semantic analysis, support vector machines, "bag of words" among other techniques. == Applications and strategies == The application of sophisticated linguistic analysis to news and social media has grown from an area of research to mature product solutions since 2007. News analytics and news sentiment calculations are now routinely used by both buy-side and sell-side in alpha generation, trading execution, risk management, and market surveillance and compliance. There is however a good deal of variation in the quality, effectiveness and completeness of currently available solutions. A large number of companies use news analysis to help them make better business decisions. Academic researchers have become interested in news analysis especially with regards to predicting stock price movements, volatility and traded volume. Provided a set of values such as sentiment and relevance as well as the frequency of news arrivals, it is possible to construct news sentiment scores for multiple asset classes such as equities, Forex, fixed income, and commodities. Sentiment scores can be constructed at various horizons to meet the different needs and objectives of high and low frequency trading strategies, whilst characteristics such as direction and volatility of asset returns as well as the traded volume may be addressed more directly via the construction of tailor-made sentiment scores. Scores are generally constructed as a range of values. For instance, values may range between 0 and 100, where values above and below 50 convey positive and negative sentiment, respectively. === Absolute return strategies === The objective of absolute return strategies is absolute (positive) returns regardless of the direction of the financial market. To meet this objective, such strategies typically involve opportunistic long and short positions in selected instruments with zero or limited market exposure. In statistical terms, absolute return strategies should have very low correlation with the market return. Typically, hedge funds tend to employ absolute return strategies. Below, a few examples show how news analysis can be applied in the absolute return strategy space with the purpose to identify alpha opportunities applying a market neutral strategy or based on volatility trading. Example 1 Scenario: The gap between the news sentiment scores for direction, S {\displaystyle S} , of Company X {\displaystyle X} and Market Y {\displaystyle Y} has moved beyond + 20 {\displaystyle +20} . That is, S X − S Y {\displaystyle S_{X}-S_{Y}} ≥ 20 {\displaystyle 20} . Action: Buy the stock on Company X {\displaystyle X} and short the future on Market Y {\displaystyle Y} . Exit Strategy: When the gap in the news sentiment scores for direction of Company X {\displaystyle X} and Market Y {\displaystyle Y} has disappeared, S X − S Y {\displaystyle S_{X}-S_{Y}} = 0 {\displaystyle 0} , sell the stock on Company X {\displaystyle X} and go long the future on Market Y {\displaystyle Y} to close the positions. Example 2 Scenario: The news sentiment score for volatility of Company X {\displaystyle X} goes above 70 {\displaystyle 70} out of 100 {\displaystyle 100} indicating an expected volatility above the option implied volatility. Action: Buy a short-dated straddle (the purchase of both a put and a call) on the stock of Company X {\displaystyle X} . Exit Strategy: Keep the straddle on Company X {\displaystyle X} until expiry or until a certain profit target has been reached. === Relative return strategies === The objective of relative return strategies is to either replicate (passive management) or outperform (active management) a theoretical passive reference portfolio or benchmark. To meet these objectives such strategies typically involve long positions in selected instruments. In statistical terms, relative return strategies often have high correlation with the market return. Typically, mutual funds tend to employ relative return strategies. Below, a few examples show how news analysis can be applied in the relative return strategy space with the purpose to outperform the market applying a stock picking strategy and by making tactical tilts to ones asset allocation model. Example 1 Scenario: The news sentiment score for direction of Company X {\displaystyle X} goes above 70 {\displaystyle 70} out of 100 {\displaystyle 100} . Action: Buy the stock on Company X {\displaystyle X} . Exit Strategy: When the news sentiment score for direction of Company X {\displaystyle X} falls below 60 {\displaystyle 60} , sell the stock on Company X {\displaystyle X} to close the position. Example 2 Scenario: The news sentiment score for direction of Sector Z {\displaystyle Z} goes above 70 {\displaystyle 70} out of 100 {\displaystyle 100} . Action: Include Sector Z {\displaystyle Z} as a tactical bet in the asset allocation model. Exit Strategy: When the news sentiment score for direction of Sector Z {\displaystyle Z} falls below 60 {\displaystyle 60} , remove the tactical bet for Sector Z {\displaystyle Z} from the asset allocation model. === Financial risk management === The objective of financial risk management is to create economic value in a firm or to maintain a certain risk profile of an investment portfolio by using financial instruments to manage risk exposures, particularly credit risk and market risk. Other types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc. Below, a few examples show how news analysis can be applied in the financial risk management space with the purpose to either arrive at better risk estimates in terms of Value at Risk (VaR) or to manage the risk of a portfolio to meet ones portfolio mandate. Example 1 Scenario: The bank operates a VaR model to manage the overall market risk of its portfolio. Action: Estimate the portfolio covariance matrix taking into account the development of the news sentiment score for volume. Implement the relevant hedges to bring the VaR of the bank in line with the desired levels. Example 2 Scenario: A portfolio manager operates his portfolio towards a certain desired risk profile. Action: Estimate the portfolio covariance matrix taking into account the development of the news sentiment score for volume. Scale the portfolio exposure according to the targeted risk profile. === Computer algorithms using news analytics === Within 0.33 seconds, computer algorithms using news analytics can notify subscribers which company the news is about, if the news article sentiment is positive or negative, if the news is ranked as high or low relative importance … relative relevance. the stock price reaction and the increase in trade volume is concentrated in the first 5 seconds after an news article is released. === Algorithmic order execution === The objective of algorithmic order execution, which is part of the concept of algorithmic trading, is to reduce trading costs by optimizing on the timing of a given order. It is widely used by hedge funds, pension funds, mutual funds, and other institutional traders to divide up large trades into several smaller trades to manage market impact, opportunity cost, and risk more effectively. The example below shows how news analysis can be applied in the algorithmic order execution space with the purpose to arrive at more efficient algorithmic trading systems. Example 1 Scenario: A large order needs to be placed in the market for the stock on Company X {\displaystyle X} . Action: Scale the daily volume distribution for Company X {\displaystyle X} applied in the algorithmic trading system, thus taking into account the news sentiment score for volume. This is followed by the creation of the desired trading distribution forcing greater market participation during the periods of the day when volume is expected to be heaviest. == Effects == Being able to express news stories as numbers permits the manipulation of everyday information in a statistical way that allows computers not only to make decisions once made only by humans, but to do so more efficiently. Since market participants are always looking for an edge, the speed of computer connections and the delivery of news analysis, measured in milliseconds, have become essential.
Color
Color (or colour in Commonwealth English) is the visual perception produced by the activation of the different types of cone cells in the eye caused by light. Though color is not an inherent property of matter, color perception is related to an object's light absorption, emission, reflection and transmission. For most humans, visible wavelengths of light are the ones perceived in the visible light spectrum, with three types of cone cells (trichromacy). Other animals may have a different number of cone cell types or have eyes sensitive to different wavelengths, such as bees that can distinguish ultraviolet, and thus have a different color sensitivity range. Animal perception of color originates from different light wavelength or spectral sensitivity in cone cell types, which is then processed by the brain. Colors have perceived properties such as hue, colorfulness, and lightness. Colors can also be additively mixed (mixing light) or subtractively mixed (mixing pigments). If one color is mixed in the right proportions, because of metamerism, they may look the same as another stimulus with a different reflection or emission spectrum. For convenience, colors can be organized in a color space, which when being abstracted as a mathematical color model can assign each region of color with a corresponding set of numbers. Thus, color spaces are an essential tool for color reproduction in print, photography, computer monitors, and television. Some of the most well-known color models and color spaces are RGB, CMYK, HSL/HSV, CIE Lab, and YCbCr/YUV. Because the perception of color is an important aspect of human life, different colors have been associated with emotions, activity, and nationality. Names of color regions in different cultures can have different, sometimes overlapping areas. In visual arts, color theory is used to govern the use of colors in an aesthetically pleasing and harmonious way. The theory of color includes the color complements; color balance; and classification of primary colors, secondary colors, and tertiary colors. The study of colors in general is called color science. == Physical properties == Electromagnetic radiation is characterized by its wavelength (or frequency) and its intensity. When the wavelength is within the visible spectrum (the range of wavelengths humans can perceive, approximately from 390 nm to 700 nm), it is known as "visible light". Most light sources emit light at many different wavelengths; a source's spectrum is a distribution giving its intensity at each wavelength. Although the spectrum of light arriving at the eye from a given direction determines the color sensation in that direction, there are many more possible spectral combinations than color sensations. In fact, one may formally define a color as a class of spectra that give rise to the same color sensation, although such classes would vary widely among different animal species, and to a lesser extent among individuals within the same species. In each such class, the members are called metamers of the color in question. This effect can be visualized by comparing the light sources' spectral power distributions and the resulting colors. === Spectral colors === The familiar colors of the rainbow in the spectrum—named using the Latin word for appearance or apparition by Isaac Newton in 1671—include all those colors that can be produced by visible light of a single wavelength only, the pure spectral or monochromatic colors. The spectrum above shows approximate wavelengths (in nm) for spectral colors in the visible range. Spectral colors have 100% purity, and are fully saturated. A complex mixture of spectral colors can be used to describe any color, which is the definition of a light power spectrum. The spectral colors form a continuous spectrum, and how it is divided into distinct colors linguistically is a matter of culture and historical contingency. Despite the ubiquitous ROYGBIV mnemonic used to remember the spectral colors in English, the inclusion or exclusion of colors is contentious, with disagreement often focused on indigo and cyan. Even if the subset of color terms is agreed, their wavelength ranges and borders between them may not be. The intensity of a spectral color, relative to the context in which it is viewed, may alter its perception considerably. For example, a low-intensity orange-yellow is brown, and a low-intensity yellow-green is olive green. Additionally, hue shifts towards yellow or blue happen if the intensity of a spectral light is increased; this is called Bezold–Brücke shift. In color models capable of representing spectral colors, such as CIELUV, a spectral color has the maximal saturation. In Helmholtz coordinates, this is described as 100% purity. === Color of objects === The physical color of an object depends on how it absorbs and scatters light. Most objects scatter light to some degree and do not reflect or transmit light specularly like glasses or mirrors. A transparent object allows almost all light to transmit or pass through, thus transparent objects are perceived as colorless. Conversely, an opaque object does not allow light to transmit through and instead absorbs or reflects the light it receives. Like transparent objects, translucent objects allow light to transmit through, but translucent objects are seen colored because they scatter or absorb certain wavelengths of light via internal scattering. The absorbed light is often dissipated as heat. == Color vision == === Development of theories of color vision === Although Aristotle and other ancient scientists had already written on the nature of light and color vision, it was not until Isaac Newton that light was identified as the source of the color sensation. In 1810, Johann Wolfgang von Goethe published his comprehensive Theory of Colors in which he provided a rational description of color experience, which "tells us how it originates, not what it is". In 1801, Thomas Young proposed his trichromatic theory, to explain how a wide spectrum of different wavelengths could be detected by the human eye. It would be unreasonable to suppose that the human eye contained hundreds of different receptors each responding to the presence of a specific wavelength. Instead, he suggested that the human experience of color derives from a complex interaction and mixing from the output three receptors. This theory was later confirmed by James Clerk Maxwell and refined by Hermann von Helmholtz. Maxwell experimentally demonstrated that any color could be matched with a combination of three lights. As Helmholtz puts it, "the principles of Newton's law of mixture were experimentally confirmed by Maxwell in 1856. Young's theory of color sensations, like so much else that this marvelous investigator achieved in advance of his time, remained unnoticed until Maxwell directed attention to it." At the same time as Helmholtz, Ewald Hering developed the opponent process theory of color, noting that color blindness and afterimages typically come in opponent pairs (red-green, blue-orange, yellow-violet, and black-white). Ultimately these two theories were synthesized in 1957 by Hurvich and Jameson, who showed that retinal processing corresponds to the trichromatic theory, while processing at the level of the lateral geniculate nucleus corresponds to the opponent theory. In 1931, the International Commission on Illumination (CIE), an international group of experts, developed a mathematical color model which mapped out the space of observable colors, allowing every individual color able to be specified with a set of three numbers. === Color in the eye === The ability of the human eye to distinguish colors is based upon the varying sensitivity of different cells in the retina to light of different wavelengths. Humans are trichromatic—the retina contains three types of color receptor cells, or cones. One type, relatively distinct from the other two, is most responsive to light that is perceived as blue or blue-violet, with wavelengths around 450 nm; cones of this type are sometimes called short-wavelength cones or S cones (or misleadingly, blue cones). The other two types are closely related genetically and chemically: middle-wavelength cones, M cones, or green cones are most sensitive to light perceived as green, with wavelengths around 540 nm, while the long-wavelength cones, L cones, or red cones, are most sensitive to light that is perceived as greenish yellow, with wavelengths around 570 nm. Light, no matter how complex its composition of wavelengths, is reduced to three color components by the eye. Each cone type adheres to the principle of univariance, which is that each cone's output is determined by the amount of light that falls on it over all wavelengths. For each location in the visual field, the three types of cones yield three signals based on the extent to which each is stimulated. These amounts of stimulation are sometimes called tristimulus values. The response cu
AI@50
AI@50, formally known as the "Dartmouth Artificial Intelligence Conference: The Next Fifty Years" (July 13–15, 2006), was a conference organized by James H. Moor, commemorating the 50th anniversary of the Dartmouth workshop which effectively inaugurated the history of artificial intelligence. Five of the original ten attendees were present: Marvin Minsky, Ray Solomonoff, Oliver Selfridge, Trenchard More, and John McCarthy. While sponsored by Dartmouth College, General Electric, and the Frederick Whittemore Foundation, a $200,000 grant from the Defense Advanced Research Projects Agency (DARPA) called for a report of the proceedings that would: Analyze progress on AI's original challenges during the first 50 years, and assess whether the challenges were "easier" or "harder" than originally thought and why Document what the AI@50 participants believe are the major research and development challenges facing this field over the next 50 years, and identify what breakthroughs will be needed to meet those challenges Relate those challenges and breakthroughs against developments and trends in other areas such as control theory, signal processing, information theory, statistics, and optimization theory. A summary report by the conference director, James H. Moor, was published in AI Magazine. == Conference Program and links to published papers == James H. Moor, conference Director, Introduction Carol Folt and Barry Scherr, Welcome Carey Heckman, Tonypandy and the Origins of Science === AI: Past, Present, Future === John McCarthy, What Was Expected, What We Did, and AI Today Marvin Minsky, The Emotion Machine === The Future Model of Thinking === Ron Brachman and Hector Levesque, A Large Part of Human Thought David Mumford, What is the Right Model for 'Thought'? Stuart Russell, The Approach of Modern AI === The Future of Network Models === Geoffrey Hinton & Simon Osindero, From Pandemonium to Graphical Models and Back Again Rick Granger, From Brain Circuits to Mind Manufacture === The Future of Learning & Search === Oliver Selfridge, Learning and Education for Software: New Approaches in Machine Learning Ray Solomonoff, Machine Learning — Past and Future Leslie Pack Kaelbling, Learning to be Intelligent Peter Norvig, Web Search as a Product of and Catalyst for AI === The Future of AI === Rod Brooks, Intelligence and Bodies Nils Nilsson, Routes to the Summit Eric Horvitz, In Pursuit of Artificial Intelligence: Reflections on Challenges and Trajectories === The Future of Vision === Eric Grimson, Intelligent Medical Image Analysis: Computer Assisted Surgery and Disease Monitoring Takeo Kanade, Artificial Intelligence Vision: Progress and Non-Progress Terry Sejnowski, A Critique of Pure Vision === The Future of Reasoning === Alan Bundy, Constructing, Selecting and Repairing Representations of Knowledge Edwina Rissland, The Exquisite Centrality of Examples Bart Selman, The Challenge and Promise of Automated Reasoning === The Future of Language and Cognition === Trenchard More The Birth of Array Theory and Nial Eugene Charniak, Why Natural Language Processing is Now Statistical Natural Language Processing Pat Langley, Intelligent Behavior in Humans and Machines === The Future of the Future === Ray Kurzweil, Why We Can Be Confident of Turing Test Capability Within a Quarter Century George Cybenko, The Future Trajectory of AI Charles J. Holland, DARPA's Perspective === AI and Games === Jonathan Schaeffer, Games as a Test-bed for Artificial Intelligence Research Danny Kopec, Chess and AI Shay Bushinsky, Principle Positions in Deep Junior's Development === Future Interactions with Intelligent Machines === Daniela Rus, Making Bodies Smart Sherry Turkle, From Building Intelligences to Nurturing Sensibilities === Selected Submitted Papers: Future Strategies for AI === J. Storrs Hall, Self-improving AI: An Analysis Selmer Bringsjord, The Logicist Manifesto Vincent C. Müller, Is There a Future for AI Without Representation? Kristinn R. Thórisson, Integrated A.I. Systems === Selected Submitted Papers: Future Possibilities for AI === Eric Steinhart, Survival as a Digital Ghost Colin T. A. Schmidt, Did You Leave That 'Contraption' Alone With Your Little Sister? Michael Anderson & Susan Leigh Anderson, The Status of Machine Ethics Marcello Guarini, Computation, Coherence, and Ethical Reasoning
Agent mining
Agent mining is a research field that combines two areas of computer science: multiagent systems and data mining. It explores how intelligent computer agents can work together to discover, analyze, and learn from large amounts of data more effectively than traditional methods. == Historical context == The interaction and the integration between multiagent systems and data mining have a long history. The very early work on agent mining focused on agent-based knowledge discovery, agent-based distributed data mining, and agent-based distributed machine learning, and using data mining to enhance agent intelligence. The International Workshop on Agents and Data Mining Interaction has been held for more than 10 times, co-located with the International Conference on Autonomous Agents and Multi-Agent Systems. Several proceedings are available from Springer Lecture Notes in Computer Science.
The Great Automatic Grammatizator
The Great Automatic Grammatizator (published in the U.S. as The Umbrella Man and Other Stories) is a posthumous 1998 collection of thirteen short stories written by British author Roald Dahl. The stories were selected for teenagers from Dahl's adult works. All the stories included were published elsewhere originally; their sources are noted below. The stories, with the exception of the war story "Katina", possess a deadpan, ironic, bizarre, or even macabre sense of humor. They generally end with unexpected plot twists. == Stories == "The Great Automatic Grammatizator" (from Someone Like You): A mechanically-minded man reasons that the rules of grammar are fixed by certain, almost mathematical principles. By exploiting this idea, he is able to create a mammoth machine that can write a prize-winning novel in roughly fifteen minutes. The story ends on a fearful note, as more and more of the world's writers are forced into licensing their names—and all hope of human creativity—to the machine. "Mrs. Bixby and the Colonel's Coat" (from Kiss Kiss): Mrs. Bixby cheats on her dentist husband with a rich, dashing colonel. When their relationship breaks off, the colonel offers Mrs. Bixby a gorgeous and expensive mink coat. In an attempt to explain the coat away, Mrs. Bixby sets up an elaborate trick with the help of a pawn shop—but her husband learns of the ruse and manages to turn the tables. "The Butler" (from More Tales of the Unexpected): An obnoxious and newly wealthy couple employs a butler and chef to impress dinner guests. The butler recommends that the husband buy expensive wines to please his guests, and the man slavishly follows the idea. The butler and the chef reap the rewards of this idea, while making fools of the "fashionable" couple. "Man from the South" (from Someone Like You): At a seaside resort in Jamaica, a strange old man makes a bet with an American man in his late teens. If the young man's cigarette lighter can spark ten times without fail, the American will win a brand-new Cadillac car—but failure means losing the little finger of his right hand. The high-tension wager ensues, and with only a few sparks left, a woman—who knows only too well the cost of the old man's bets—appears and stops the madness. "The Landlady" (from Kiss Kiss): A young man traveling to London on business stops at a bed and breakfast along the way, where a strange and slightly dotty landlady eagerly welcomes him. The eccentric nature of the house, and the news that only two other young men have ever stayed there, confuse and frighten the young man. In the end, the landlady—who indulges in the hobby of taxidermy—and the boy share a drink of tea that tastes of bitter almonds, and the landlady softly smiles at what may be her latest stuffing project. "Parson's Pleasure" (from Kiss Kiss): A man discovers an extremely rare piece of Chippendale furniture at the farm of some boorish ranchers. He desperately attempts to buy the piece cheap, in the hope of selling it at auction to earn a huge profit. He manages to buy the piece "for firewood", only for the ranchers to destroy it in an attempt to make it fit into his car. "The Umbrella Man" (from More Tales of the Unexpected): On a rainy day, a mother and daughter meet a gentlemanly old man on a street corner, who offers them a beautiful silk umbrella in exchange for a pound note. They trade, and the daughter notices that the "feeble" old man suddenly seems much sprier. They follow him, and discover that the gentleman is a con artist who visits various pubs, has a drink, and then steals another umbrella to continue the cycle. "Katina" (from Over to You: Ten Stories of Flyers and Flying): A group of RAF pilots stationed in Greece during World War II discover a hauntingly beautiful young girl, whose "family is beneath the rubble." She becomes their squadron's unofficial "mascot". In the end, her fragile life is taken as she stands defiantly against a rain of bullets from Nazi aircraft, shaking her fists at the heavens. "The Way Up to Heaven" (from Kiss Kiss): Mrs. Foster suffers from a chronic phobia of being late for appointments. Her husband enjoys the cruel sport of purposely delaying their activities, just to rile his wife. On the day when Mrs. Foster is due to fly to Paris to visit her grandchildren, her husband engages in his usual tricks. But as Mrs. Foster rushes from their taxi to the house to find him, she hears a strange noise—and turns triumphantly toward her cab. It is only when she returns, and calls a man to "repair the lift" that was stuck between floors in the house, that readers guess Mr. Foster's fate. "Royal Jelly" (from Kiss Kiss): New parents fear for the life of their little girl, who is sickly and dangerously underweight. The husband, a beekeeper, remembers hearing of the miraculous royal jelly used by bees to transform one particular larva into a queen. He adds the mixture to his daughter's bottles, and she puts on weight at an astonishing rate. The mother senses that something is amiss, and the husband confesses his actions—along with the fact that he himself swallowed buckets of the jelly for months in an attempt to cure his impotence. The royal jelly did the trick—but the strange side-effects include a disturbing metamorphosis for both father and daughter. "Vengeance is Mine Inc." (from More Tales of the Unexpected): Two brothers who are short of cash bemoan their fate over breakfast while reading the society column of a newspaper. They hit upon a scheme to take revenge on cruel tabloid writers in exchange for money from wealthy patrons. The unconventional plan works, and the brothers line their pockets with the spoils of their plans. "Taste" (from Someone Like You): A rich man with a beautiful young daughter hosts a dinner party, inviting a famous connoisseur of fine wines. When the rich man boasts that he has a wine that the expert cannot identify, the stakes become frighteningly high: if he can guess the name and vintage of the wine, he will win his daughter's hand. After an elaborate show, the expert guesses correctly; however, the family's maid appears and inadvertently exposes the guest as a cheat, thus saving the girl. "Neck" (from Someone Like You): A newspaper heir finds himself suddenly engaged to the voluptuous and controlling Lady Tutton. He loses all control of his life, and only his trusted butler and friends realize how broken he is by her control. A weekend trip to their estate, however, proves the perfect opportunity for Lord Tutton to engage in revenge against his wicked wife: her head is trapped in a valuable piece of wooden sculpture, and he must decide whether to use a saw or an axe to cut her free. == Publication details == Dahl, Roald (19 January 2004). The Umbrella Man and Other Stories. Speak. ISBN 9780142400876. == Reception == Groff Conklin in 1954 called the short story "The Great Automatic Grammatizator" "an awe-inspiring fantasy-satire ... an unforgettable bit of biting nonsense".
2024–present global memory supply shortage
A global computer memory supply shortage started in 2024 due to supply constraints and rapid price escalation in the semiconductor memory market, particularly affecting DRAM and NAND flash memory. This shortage is sometimes labelled by tech media outlets as "RAMmageddon" or the "RAMpocalypse". Unlike the 2020–2023 global chip shortage, which stemmed primarily from pandemic-related supply chain disruptions from COVID-19, this shortage is driven by a structural reallocation of manufacturing capacity toward high-margin products for artificial intelligence infrastructure, creating scarcity of computer memory in consumer and enterprise PC markets. According to a 2026 Kearney's PERLab analysis, the shortage is expected to last at least until 2030, with CEOs agreeing with the timelines. == Background == Following a severe market downturn in 2022–2023, major memory manufacturers—Samsung Electronics, SK Hynix, and Micron Technology—implemented strategic production cuts to stabilize pricing. By mid-2024, the rapid expansion of generative AI services triggered unprecedented demand for specialized memory products, particularly High Bandwidth Memory (HBM) used in AI accelerators and data center GPUs. Specialized components of semiconductor technology are also experiencing supply constraints due to high demand in AI application. For example, glass cloth, a high-performance glass fiber substrate used for power efficient high speed data transfer and a crucial component of semiconductor manufacturing, is experiencing a supply crisis. Nitto Boseki, a Japanese firm having overwhelming monopoly in its production, is not able to meet increased demands, making chip-makers such as Qualcomm, Apple, Nvidia and AMD compete for securing supply. There are also reports of smaller electronics companies struggling to find suppliers for components such as NAND flash. Memory suppliers are adapting to increased demands and market unpredictability by requiring prepayment or shorter time-frame of payment, which makes it more difficult for smaller firms to acquire capital to survive. By 2026, due to steadily increased demand on resources, CPUs are also experiencing shortage issues due to low fabrication capacity, prioritisation of server CPUs, and increased demand, with CPU prices also being forecast to increase by as much as 15%. The demand on memory has also increased strain on other electronic components such as hard disk devices, with reports such as Western Digital's hard disk supply for 2026 being booked for enterprise applications before February 2026. A 2024 McKinsey analysis projected that global demand for AI-ready data center capacity would grow at approximately 33% annually through 2030, with AI workloads consuming roughly 70% of total data center capacity by the decade's end. In addition, according to Kearney's State of Semiconductor 2025 Report, executives were already expecting a shortage in the <8nm wafer size with memory chips being mentioned as an acute source of concern. Multiple companies mentioned being prepared for it through long-term agreements with RAM suppliers or amassing additional inventory. On 24 March 2026, Google announced TurboQuant, a memory compression technology focused on large language models (LLM) and vector search engines, which it claimed achieves 6x lower memory consumption in tested local LLMs and 8x performance enhancement in tests running on H100 accelerators. The technology is also a drop in enhancement for existing inference pipeline. Amid speculation about memory demand trends, memory manufacturers, SanDisk, Micron, Western Digital and Seagate, among other companies involved in memory manufacture experienced stock price declines. Prices of memory kits also reduced in the following months, although still at inflated prices. == Causes == === HBM production displacement === HBM manufacturing requires significantly more wafer capacity per bit than standard DRAM modules. Industry sources reported that as manufacturers allocated increasing wafer capacity to HBM production to meet contracts with AI infrastructure providers, the supply of conventional DDR4 and DDR5 modules for consumer PCs and smartphones contracted sharply. By September 2025, Samsung Electronics had reportedly expanded its 1c DRAM capacity to target 60,000 wafers per month specifically for HBM4 production, further diverting resources from consumer memory lines. === Geopolitical and trade barriers === The supply chain was further constrained by escalating trade tensions between the United States and China. Throughout 2025, fears of U.S. regulatory backlash and new tariff structures led major manufacturers like Samsung and SK Hynix to halt sales of older semiconductor manufacturing equipment to Chinese entities, effectively capping production capacity in the region. Additionally, proposed tariff policies by the U.S. administration in late 2025 prompted supply chain realignments, with Apple reportedly accelerating plans to source all U.S.-bound iPhones from India to avoid potential levies. === NAND flash capacity constraints === In the NAND flash segment, manufacturers prioritized higher-margin enterprise SSDs for data center applications while phasing out older process nodes more rapidly than anticipated. In November 2025, contract prices for NAND wafers increased by more than 60% month-over-month for certain product categories, with 512GB TLC experiencing the steepest rise as legacy manufacturing capacity was retired. == Impact on industry and consumers == === Manufacturer responses === Major PC manufacturers responded to component cost increases with significant price adjustments and supply chain strategies. Dell Technologies Chief Operating Officer Jeff Clarke stated during a November 2025 analyst call that the company had "never witnessed costs escalating at the current pace," describing tighter availability across DRAM, hard drives, and NAND flash memory. Analysts at Morgan Stanley downgraded Dell Technologies stock from "Overweight" to "Underweight" in late 2025, citing the company's heavy exposure to rising server memory costs. The firm warned that skyrocketing memory prices could significantly erode margins for server and PC OEMs. Conversely, Apple Inc. was reportedly less affected than its competitors, having secured long-term supply agreements for DRAM through the first quarter of 2026. Lenovo Chief Financial Officer Winston Cheng described the cost surge as "unprecedented" and disclosed that the company's memory inventories were approximately 50% above normal levels in anticipation of further price increases. === Consumer electronics sector === The shortage particularly affected smartphone manufacturers and other consumer electronics producers. DRAM prices reportedly rose by 172% throughout 2025, leading manufacturers like Samsung to halt new orders for DDR5 modules to reassess pricing structures and Micron to exit its 'Crucial' brand of consumer products. In Tokyo's Akihabara electronics district, retailers began limiting purchases of memory products to prevent hoarding, with prices for popular DDR5 memory modules more than doubling in some cases. Despite the broad trend of rising hardware costs, some companies engaged in aggressive pricing strategies to maintain market share; for example, Sony reduced the price of the PlayStation 5 by $100 for Black Friday 2025, potentially absorbing increased component costs to stimulate software ecosystem growth. Due to memory prices more than doubling in a single quarter, HP revealed in its Q1 2026 earnings call that memory costs account for 35% of PC build materials up from 15-18% previous quarter. Despite showing strong Q1 2026 earning driven by Windows 11 upgrade cycle and AI PC adoption, HP warned investors of low operating margins and up to double digit percentage decline for coming quarter. Trendforce, an IT analytics company, updated its forecast from 1.7% year-over-year growth in PC market to 2.6% year-over-year decline for 2026, amid backdrop of steadily increasing prices and supply crisis. Research and analytics firms, Gartner and IDC expect worldwide PC market to decline 10-11% and smartphone market to decline 8-9% in 2026. Gartner also projects that rising memory prices will make low-margin entry level laptops under 500 USD financially unviable in two years. The RAM shortage has delayed the release of Valve's second Steam Machine due to increased memory prices. The device was originally set to launch in early 2026. === AI infrastructure competition === Technology companies including Google, Amazon, Microsoft, and Meta Platforms placed open-ended orders with memory suppliers, indicating they would accept as much supply as available regardless of cost, according to Reuters sources. The limited supply of AI chips has been cited as a reason for the slow down in compute growth. In October 2025, OpenAI formally announced a strategic partnership using letters of intent with Samsung Electronics and SK Hynix
Combs method
The Combs method is a rule base reduction method of writing fuzzy logic rules described by William E. Combs in 1997. It is designed to prevent combinatorial explosion in fuzzy logic rules. The Combs method takes advantage of the logical equality ( ( p ∧ q ) ⇒ r ) ⟺ ( ( p ⇒ r ) ∨ ( q ⇒ r ) ) {\displaystyle ((p\land q)\Rightarrow r)\iff ((p\Rightarrow r)\lor (q\Rightarrow r))} . == Equality proof == The simplest proof of given equality involves usage of truth tables: == Combinatorial explosion == Suppose we have a fuzzy system that considers N variables at a time, each of which can fit into at least one of S sets. The number of rules necessary to cover all the cases in a traditional fuzzy system is S N {\displaystyle S^{N}} , whereas the Combs method would need only S × N {\displaystyle S\times N} rules. For example, if we have five sets and five variables to consider to produce one output, covering all the cases would require 3125 rules in a traditional system, while the Combs method would require only 25 rules, taming the combinatorial explosion that occurs when more inputs or more sets are added to the system. This article will focus on the Combs method itself. To learn more about the way rules are traditionally formed, see fuzzy logic and fuzzy associative matrix. == Example == Suppose we were designing an artificial personality system that determined how friendly the personality is supposed to be towards a person in a strategic video game. The personality would consider its own fear, trust, and love in the other person. A set of rules in the Combs system might look like this: The table translates to: [IF Fear IS Unafraid THEN Friendship IS Enemies OR IF Fear IS ModerateFear THEN Friendship IS Neutral OR IF Fear IS Afraid THEN Friendship IS GoodFriends ] OR [IF Trust IS Distrusting THEN Friendship IS Enemies OR IF Trust IS ModerateTrust THEN Friendship IS Neutral OR IF Trust IS Trusting THEN Friendship IS GoodFriends] OR [IF Love IS Unloving THEN Friendship IS Enemies OR IF Love IS ModerateLove THEN Friendship IS Neutral OR IF Love IS Loving THEN Friendship IS GoodFriends] In this case, because the table follows a straightforward pattern in the output, it could be rewritten as: Each column of the table maps to the output provided in the last row. To obtain the output of the system, we just average the outputs of each rule for that output. For example, to calculate how much the computer is Enemies with the player, we take the average of how much the computer is Unafraid, Distrusting, and Unloving of the player. When all three averages are obtained, the result can then be defuzzified by any of the traditional means.