According to Morgan Stanley, a “recovery story” is unfolding in one corner of the semiconductor market this year. It is a memory sector that contains DRAM (Dynamic Random Access Memory), a type of semiconductor memory needed for data processing, and his NAND, another type of memory that continues to work even without power. Morgan Stanley analysts said: “The memory sector is charting a recovery cycle this year. Typical of that first phase, all are undergoing multiple expansions, with many good things to come ahead. ” Memo for September 7th. “On the revenue side, the impact of AI is clearly noticeable.[high bandwidth memory] “High-bandwidth memory (HBM) is a segment of the DRAM sector and a critical component needed to run advanced processors that cannot be run on regular DRAM. Analysts are optimistic about: The sector will be in the spotlight this year as the topic of artificial intelligence puts a spotlight on the advanced processors needed for AI applications, but the ratings for “preferred strategies” and “least disadvantages” are It is justified by revenue growth and duration, the bank said. South Korean chipmaker SK Hynix, US’ Western Digital Corporation, and Taiwan’s Winbond and Phison are among the company’s “priority strategies” to benefit from NAND’s recovery in cash flow and “strong competitiveness” in high-bandwidth memory. The bank said it has received the same. Morgan Stanley said the potential for NAND improvements in the U.S. appears “most positive” for Western Digital, and while it does not discount a strong recovery in NAND profits, “we remain conservative for the next two to three years.” It will become a target,” he added. “The market remains oversupplied, and a return to positive gross margins should bring idle capacity back into service.” SK Hynix and Samsung are banking on high-bandwidth memory demand driven by artificial intelligence trends. This will be the main beneficiary, the bank said. . “From Hynix’s perspective, the company’s strong position in the AI space and its visibility keep us strong despite the rising stock price. [overweight]. Morgan Stanley analysts said: “The company is the biggest beneficiary of the ongoing surge in AI spending and is experiencing the most unique growth among our Asian technology sectors. I believe we will maintain that pole position.” Morgan Stanley said it is becoming more optimistic about the memory sector given further improvement in pricing and inventory conditions. The bank added that NAND is benefiting from Samsung’s supply cuts and “will see double-digit price increases for September deliveries,” adding, “Given oversupplied market conditions, pricing power may be temporary.” However, changes in pricing could lead to changes in customer inventory.” The bank said DRAM chip inventories have also “significantly declined” since the third quarter of this year and “recommends taking advantage of market downturns to build and take advantage of time in the market.” Stated. It’s for use,” he added. Overall, Morgan Stanley expects the supply shortage to widen in the fourth quarter and turn around in 2024 before peaking in 2025. “The industry continues to produce well below actual demand, providing reassurance that the recovery will continue into 2025.” — CNBC’s Michael Bloom contributed to this report.
Morgan Stanley names the winners and losers in chip market