The analyst suggests a bullish stance on memory-related stocks due to a memory super cycle causing pricing power and margin expansion.
Memory super cycle causing pricing power and margin expansion for direct memory producers; enterprise HDD supply booked out; distributors benefiting from inventory price differences; capex winners as fabs add capacity.
How to play memory super cycle ➡️ $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 | +0.0% | +0.0% |
| 1 week | -11.0% | -10.6% |
| 1 month | -33.5% | -33.2% |
| 3 months | — | — |
| 6 months | — | — |