The analyst suggests a bullish stance on memory-related stocks and suppliers due to a memory supercycle causing pricing power and margin expansion.
Memory prices have surged significantly, reversing a 40-year decline, benefiting direct memory producers, distributors with old inventory, and capex winners in semiconductor fabs.
How to play it: ➡️ $MU / $SNDK — direct memory producers, pricing power = margin expansion ➡️ $WDC — enterprise HDD supply already booked out for 2026 ➡️ $ARW / $AVT — distributors holding inventory bought at old prices, selling at new ones = gross margin windfall ➡️ $TSM / $ASML / $LRCX — capex winners as fabs race to add capacity at every node
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -1.8% | -1.5% |
| 1 week | -9.5% | -7.8% |
| 1 month | -34.7% | -34.1% |
| 3 months | — | — |
| 6 months | — | — |