The Memory Crunch Is Bigger Than Expected. 1 Top Stock to Buy on the Dip (Hint: Not Micron or Sandisk)
Lam Research stock has surged impressively this year, and a closer look at the memory market's prospects suggests that it isn't done soaring yet.
Overview
Memory demand has been outstripping supply due to the strong consumption of dynamic random-access memory (DRAM) and NAND flash storage chips by artificial intelligence (AI) data centers.
The memory crunch has been so acute that prices have climbed by a whopping 500% in just one year, as reported by Tom's Hardware. Importantly, the memory shortage won't be easing any time soon. Deloitte estimates that DRAM prices could jump 4x in 2026 despite efforts by memory manufacturers to bring additional supply online.
Details
The favorable demand-supply dynamics have fueled outstanding growth in the revenue and earnings of Micron Technology and Sandisk. The good news for Sandisk and Micron stock investors is that the supply crunch may not ease until 2029 or 2030, according to Deloitte. This could pave the way for more upside in both stocks.
Source
Originally published at www.fool.com.