How Long Can the AI Storage Boom Last? Wall Street: Price Hikes May Cool Off, but Supply Constraints Expected to Persist

Odaily News: After a sharp rally, the global memory chip sector has recently experienced a notable pullback. Despite sustained AI demand and memory manufacturers actively planning capacity expansions (indicating high industry prosperity), the market has begun to question how much longer this explosive boom in the memory industry can last. Several

Wall Street investment banks have recently shared their views on the outlook for the memory chip industry. Overall, analysts believe that the momentum of AI-driven memory chip price hikes may slow, but the supply shortage is expected to persist in the short term. While data center spending continues to drive demand for high-end memory chips, analysts warn that the significant price increases that have driven record profits for memory manufacturers over the past few quarters may not be sustainable, signaling that the industry cycle is entering a later stage. In a report released last week, Morgan Stanley warned that as price increases narrow and manufacturer inventories gradually build up, the memory chip cycle will enter its late stage in the fourth quarter.