Wall Street Says AI Storage Price Surge May Cool, But Supply Tightness Expected to Persist

TechFlow News, August 11, multiple Wall Street investment banks recently expressed views on the prospects of the memory chip industry. Overall, analysts believe that the momentum of price increases for AI-driven memory chips may slow down, but the supply shortage situation will continue in the short term. Morgan Stanley warned in a released report that as the price increase margin narrows and manufacturer inventories gradually accumulate, the memory chip cycle will enter the late stage in the fourth quarter.

Bernstein pointed out in a report that traditional DRAM contract prices are expected to rise quarter-over-quarter by about 17% in the third quarter, a significant slowdown compared to the quarter-over-quarter increase of about 65% in the second quarter of this year. JPMorgan expects the memory chip shortage to last for another two years. The bank estimates that the market needs to add an additional monthly capacity of 300,000 DRAM wafer starts and 45,000 NAND wafer starts to achieve supply-demand balance before 2028. (Cailianshe)