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Memory stocks get hit. China and oversupply are the big worries
CNBC • • business
Key Points:
- Experts highlight challenges in memory chip production, noting yield issues where only about 50% of chips may be functional, impacting supply efficiency.
- Analysts believe recent developments at Chinese memory maker CXMT will not significantly alter the memory supply-demand balance in the near term.
- A South Korean opinion piece predicts a potential oversupply of memory chips by 2029, possibly ending the current supercycle and leading to an industry downturn by 2030, a forecast that remains debated among analysts.
- The AI-driven surge in memory demand has tightened supply and pushed prices higher, benefiting major manufacturers like Samsung, SK Hynix, and Micron, though the traditional boom-bust cycle's future remains uncertain.
- Industry experts anticipate a moderate price decline in DRAM by 2028 but expect prices to remain substantially higher than in 2025, supported by long-term supply agreements that may soften typical market downturns.
