- The report says high-bandwidth memory, enterprise SSDs and data-center storage became AI infrastructure bottlenecks, enabling premium pricing and premium equity valuations.
- Micron is down 33% from its high, while SanDisk, Western Digital and Seagate are down 50%, 42% and 34%, respectively, according to the report's table.
- The report attributes the reversal to expanding memory supply and states that current valuations still reflect years of elevated profitability.
Quotes
“Now the same forces that fueled the rally are beginning to work in reverse, raising an uncomfortable question for investors: Has the AI memory boom merely paused, or has the cycle already begun turning lower?”
“Memory stocks rarely bottom after the first leg down, and current valuations still price in years of elevated profitability that rising supply may undercut.”