Global memory markets are expected to witness a "supply shock" within the next year, claims Morgan Stanley, saying that AI-driven demand will result in massive developments.
Consumer & Client Memory Markets To Witness An Economic Turnover, Courtesy of AI-Fueled Demand
Well, it looks like the memory industry is finally seeing the economic rebound it has been searching for for a long time, as analysts expect the markets to experience a "gold rush" courtesy of the AI hype. A new report by Morgan Stanley states that the HBM markets are expected to witness an 11% supply shortage rate, while the DRAM industry will oversee a -23% shortage rate. The primary catalyst for this shortage is the vast HBM demand due to the massive adoption of AI accelerators, which have the HBM memory as one of its primary components.
Apart from that Morgan Stanley reports that with increasing demand, the prices of memory commodities will soar up, and the firm states that storage products are expected to increase by double-digit percentages in each quarter, while HBM prices will rapidly increase. The report states that the memory industry will see a "super cycle", and for companies like Samsung and SK hynix which have already established a consolidated position, the financial gains will still be promising.
One important factor to note here is that the report also suggests that the industry may not be able to cope with the anticipated demand in the upcoming years and that HBM will play a vital role in the future of the markets simply because of its importance in the AI industry. Morgan Stanley raised target pricing for both SK Hynix and Samsung, claiming that these firms will benefit from the upcoming super cycle.
It's promising to witness the memory markets finally taking a rebound amid all the uncertainty it has been experiencing for the past quarters, and of course, the AI hype has come in to rescue this particular segment.
News Source: MyDrivers
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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