Tech companies are rapidly expanding compute capacity for AI but are facing a memory bottleneck due to increasing demands from agentic AI and shifting workloads. Analysts from Morgan Stanley highlight that the memory supply chain is constrained, predicting rising prices and favorable conditions through 2027 as supply catches up with demand. Key players in the dynamic random-access memory (DRAM) market include Samsung, Micron, and SK Hynix, all expected to see significant price increases. Additionally, legacy memory demand is rising, with Taiwan’s Winbond positioned well to capitalize. Western Digital stands to gain from increased demand for storage solutions, while Japan’s Disco and U.S. company Applied Materials are poised for growth in advanced packaging and semiconductor manufacturing, respectively. Lastly, ASML’s monopoly on extreme ultraviolet lithography (EUV) positions it for major upside as demand rises. Overall, strategic investments in memory and semiconductor sectors present significant opportunities.
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