StickyRice
2022-08-30

$NVIDIA Corp(NVDA)$

Memory chip makers are starting to become attractive, even as pessimism rises

The global memory market is weak and getting weaker, with investment firm J.P. Morgan expecting both bit shipments and average selling prices for dynamic random access memory, or DRAM, and NAND to see "meaningful" declines the rest of this year and next.

But with all of the pessimism surrounding both markets, the DRAM market is expected to only decline 7% this year and 5% in 2023, with mid-teens growth for the NAND market, leaving the total size of the memory market bigger than it's ever been.

And memory chip makers are starting to look attractive, J.P. Morgan said.

A team of analysts, led by JJ Park, noted that the memory market is likely to see a U-shaped recovery rather than a V-shaped one. As such, the firm sees the biggest beneficiaries as SK Hynix, Micron Technology (NASDAQ:MU) and Samsung (OTCPK:SSNLF) followed by Nanya Technology and Powertech. SK Hynix, Nanya Technology, Samsung (OTCPK:SSNLF) and Powertech don't trade on U.S. exchanges, but Micron (MU) has been beaten down this year, falling 36% since the start of the year, and more than 30% over the past six months.

However, Micron (MU) has started to see some investor interest, having gained more than 2% over the past month, despite the fact it issued a weak forecast for the fourth-quarter earlier this month, citing macroeconomic factors and supply chain constraints.

@TigerStars@CaptainTiger@MillionaireTiger

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Comments

  • Chilli Padi
    2022-08-31
    Chilli Padi
    Semi-con chips are still fluid, there is still a big sell-off in general after Fed Powell speech last fridays, especially NVDA after weak earnings report.
    • StickyRice
      I think if we have recession then semiconductor demand also will be lower
  • patricklowck
    2022-08-30
    patricklowck
    buy the dip
  • zerolih
    2022-08-30
    zerolih
    NVIDIA's products like the graphs cards etc are still pretty good
  • boonk
    2022-08-30
    boonk
    Watching if can get at 150
  • lappiloco
    2022-08-30
    lappiloco
    they are going down
  • Rookie22
    2022-08-30
    Rookie22
    Demand low
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