Morgan Stanley: "there isn't enough memory vs. AI requirements, and we just don't see that changing."
By Vlad from Bastion on
Memory prices are up at least 25% from Q2 to Q3, and more than six-fold over the past year. Every AI accelerator needs HBM, and supply is already sold out. MS expects the shortage to intensify again in 2027 and 2028.
Against that backdrop, $MU trades at roughly 6x forward earnings, low for this stage of the memory cycle.
That multiple assumes the memory market is at a cyclical peak right now, while the data points to the shortage lasting several more years.