Memory Company Growth Doesn't Show Signs of Slowdown -- Market Talk
Dow Jones
15 hours ago
1326 ET - Memory companies still have a long runway for growth, despite investors' concerns they have hit a peak, Morgan Stanley analysts say. While Wall Street lacks conviction about the companies' long-term growth, the analysts think memory supply is severely bottlenecked and will continue to drive up prices. AI is consuming so much memory that there isn't enough left for other sectors, and is holding back PC and smartphone production, the analysts note. "We don't think 81% gross margin is the new normal, but it's also hard to see that getting worse in the next several quarters--perhaps even through the next two years," the analysts say. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
March 26, 2026 13:26 ET (17:26 GMT)
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