Susquehanna analyst advises retaining memory chip stocks despite volatility, citing stable pricing and AI demand.
A senior equity research analyst recommends investors hold memory stocks such as SMH, SOXX, and XSD, despite recent market fluctuations. The stocks have given up some gains but remain ahead of their three-month performance benchmarks.
Commodity memory prices have plateaued rather than declined, indicating sustained demand. The analyst argues that AI-driven product diversification will help companies maintain reasonable margins moving forward.
The guidance suggests a cautious but optimistic outlook for the sector, with entry points for new investors expected to improve in the near term.