US Top News and Analysis | Beware the boom and bust cycle of memory stocks, investors warn amid AI boom
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The article warns that despite the recent surge in memory‑chip stocks—driven by AI‑related demand and the rollout of high‑bandwidth memory (HBM)—investors should remain cautious because the sector’s historic boom‑and‑bust cycle is still a risk. Samsung, SK Hynix, Micron and SanDisk have seen shares soar this year, but analysts note that supply remains constrained, that new compression technology such as Google’s TurboQuant could sharply cut demand, and that the high valuations assume prolonged price strength and disciplined spending. South Korea’s market is especially vulnerable, with memory makers accounting for more than half of the KOSPI, prompting some advisors to recommend profit‑taking and broader diversification, while others remain bullish on the Korean giants. Overall, the article stresses that the memory industry’s perceived structural shift may be temporary and that investors should temper optimism with the sector’s historically volatile nature.
Read more:
https://www.cnbc.com/2026/05/25/memory-stocks-cyclical-boom-bust-samsung-sk-hynix.html
#Samsung #SKHynix #Micron #HBM #AI
