Citi: Memory"Overall, we believe the market is underestimating how constrained DRAM/HBM supply is likely to remain a…
Citi: Memory
"Overall, we believe the market is underestimating how constrained DRAM/HBM supply is likely to remain as AI-driven demand from hyperscalers continues to accelerate, while memory makers face diminishing benefits from process shrinks and must rely on long-cycle greenfield capacity additions. As a result, HBM and advanced memory supply could remain tight through 2027 and 2028.""Supply is the underappreciated piece, in our view: Node transitions yield less density (1-delta ~25% vs 1-gamma and prior nodes 30-40%). HBM's trade ratio eats wafer capacity, and DRAM bit growth is only in the low 20s. Real supply relief needs greenfield fabs, which takes a long time and cleanroom space is the constraint. Micron's construction spend as a % of capex is approaching 50%."$Micron Tech(MU.US) $DRAM $EWYThe copyright of this article belongs to the original author/organization.
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