Shares of SanDisk Corp. (SNDK.US) climbed more than 6% on Thursday, trading at $1,750.47.
This upward movement follows a report from Goldman Sachs on June 11th, which indicated that the potential capital diversion effects from upcoming mega initial public offerings (IPOs), such as those from SpaceX and OpenAI, are expected to be limited. The report noted that stock buybacks are sufficient to counterbalance the new supply, suggesting these events will not bring an end to the artificial intelligence (AI) bull market nor negatively impact the memory sector, thereby alleviating investor concerns.
In related industry news, a report from Digitimes Asia on Wednesday, citing supply chain sources, stated that leading cloud service providers (CSPs) have already fully booked all available long-term agreement (LTA) capacity for 2027 and are actively advancing supply negotiations for 2028. Concurrently, several memory module manufacturers have recently received notifications from original equipment manufacturers (OEMs) indicating that no additional supply can be provided beyond previously committed volumes, as upstream production capacity has been significantly redirected to meet demand for Nvidia-related AI servers and CSP needs.
This tightening supply dynamic is transmitting throughout the entire industry chain. Shortages in the DRAM and NAND markets are anticipated to intensify starting in the second half of 2026, with widespread industry expectations that the supply crunch in 2027 will surpass that of 2026.
For investors, this suggests memory prices are likely to remain robust over the next two to three years. The market continues to hold a positive outlook on the potential for further contract price increases for memory manufacturers.
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