Prediction: Even If the Strait of Hormuz Reopens Tomorrow, the Helium Crisis Will Haunt Artificial Intelligence (AI) Stocks for Months
A recent attack on Qatar's Ras Laffan Industrial City has halted helium production, affecting the global semiconductor industry. The shortage is expected to impact AI stocks and chipmakers, including Micron Technology, Seagate Technology, and Western Digital.
QatarEnergy declared force majeure at its Ras Laffan Industrial City after Iranian drone and missile strikes damaged the facility, pausing operations and halting 30-38% of the world's helium supply. Repairs are estimated to take three to five years. Helium is crucial for semiconductor fabrication, particularly in the etching process, and its unique thermal conductivity makes it irreplaceable. Chipmakers, including Micron Technology, Seagate Technology, and Western Digital, rely heavily on helium and will face production slowdowns and decreased yields. The shortage has already led to 20-30% price increases on 2026 production allocations for hard drive makers. ExxonMobil, which produces helium at its LaBarge, Wyoming facility, is a potential beneficiary of the shortage.
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