BofA: Valuation of US Memory Stocks Has Already Shown Cyclical Bottoming Characteristics, Market Concerns Are Overdone

Odaily reports that BofA believes the recent correction in US memory stocks has largely decoupled from fundamentals, valuation multiples have bottomed out, and the market's concerns about the AI memory boom turning into a downturn are excessive. The bank expects that average selling prices, revenue, and profit margins for memory chips will remain at super-cycle levels in 2027-2028; even if earnings growth slows, absolute levels will still be near historical highs. (Cailian Press)