Unlike previous memory cycles, disciplined supply management by manufacturers is preventing market flooding, sustaining favorable pricing and margins
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"if HBM and Micron's longer-term customer agreements make earnings more sustainable, we see room for investors to assign the stock a higher multiple. The stock still trades at a steep discount to many semiconductor peers, reflecting skepticism about the durability of the memory cycle."
"Demand for memory and other AI hardware is significantly outstripping supply, sending memory chip prices soaring. With supply not expected to catch up with demand anytime soon, memory chip prices are expected to keep climbing. KeyBanc analyst John Vinh expects DRAM prices to rise 15% to 20% quarter-over-quarter in the third quarter, followed by another 15% increase in the fourth quarter."
"Previous NAND upcycles often collapsed because manufacturers flooded the market with new capacity. This cycle looks different. The industry reduced wafer production after memory prices fell below profitable levels. As AI demand accelerated, though, supply found itself in a far healthier position."