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(Image credit: Getty Images) The ongoing DRAM shortage and subsequent doubling (or more) in price we've seen in recent weeks is a serious hurdle for prospective PC builders, and threatens to make computing and electronics devices pricier for at least a couple of years. According to X posts by @juklanosreeve (Jukan), Morgan Stanley's market analysts believe that even large manufacturers and integrators are set to take hits, going as far as downgrading stock position advice ratings for some .
For reference, Morgan Stanley has three ratings for stock performance predictions: OW (Overweight, or good), EW (Equal-weight, or neutral), and UW (Under-weight). Dell reportedly got a hard slap from OW to UW, while HP, Asustek, and Pegatron went from EW to OW.
Other OEMs like Acer and Compal were already UW to begin with. Morgan Stanley revised the stock price targets by roughly 20% for most of the aforementioned companies. The reason why Dell got a harsher prediction than the rest is because it sells a lot of servers, and servers normally utilize gargantuan amounts of RAM.
Asus, MSI, other manufacturers panic-buying RAM stocks, while major memory chipmakers rake in profits
Bewildered enthusiasts decry memory price increases of 100% or more
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/ddr5/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/ddr5/ai-led-dram-supply-crunch-reportedly-has-morgan-stanley-downgrading-major-oems-skyrocketing-memory-prices-could-erode-server-and-pc-margins#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.