TechFlow news, according to Chaoxiang Research, Morgan Stanley's July 6 Asia-Pacific Memory Technology Flash pointed out that memory is approaching the peak rate of change in year-over-year prices, inventory, and the breadth of earnings revisions, short-term stock prices may face pressure, but the AI-driven memory bull market is far from over, with industry profits expected to grow by 35% to 40% in 2027. Market concerns about compute oversupply among top cloud vendors may be overinterpreted, and the real direction depends on whether hyperscalers maintain capital expenditure during the Q2 earnings season. After the announcement of Long-Term Agreements, stock prices were not re-rated, reflecting the market's memory of LTAs turning into inventory burdens during the pandemic, actual execution needs to be seen rather than the agreements themselves.
Morgan Stanley suggests seeking opportunities in DRAM and traditional storage, avoiding module makers. Samsung Electronics' Q2 operating profit is expected to be approximately 85 trillion won, SK Hynix approximately 65 trillion won, both meeting market expectations.
