Bank of America: Memory Stock Pullback Not Cycle Reversal, DRAM/NAND Prices Hit Historic Highs

According to Bank of America's latest Global Memory Tech report released this week, the recent pullback in memory stocks does not signal a cycle reversal. The bank counters market concerns over Meta's capacity sales, China's Changxin DRAM entry into Apple's supply chain, and South Korea's semiconductor expansion plans, arguing these risks are overstated. Core data shows DRAM and NAND contract prices remain elevated, with 16Gb DDR5 near $47 and 64GB DDR5 server modules at $1,400—both at historical highs. Samsung Electronics reported Q2 operating profit of 89.4 trillion won, up 1,810% year-over-year, driven by memory business gains.

South Korea's semiconductor exports surged 21% month-over-month and 199% year-over-year last month to $44.8 billion, marking the sixth consecutive month of triple-digit growth. Bank of America estimates the four major hyperscalers—Amazon, Microsoft, Alphabet, and Meta—will spend approximately $700 billion on capital expenditures in 2026, up 80% year-over-year, with cloud revenue growth expected at 35-40%. Supply remains tight as advanced capacity expansion will take years to materialize, though the bank notes memory industry has shifted from "blind buying" to selective stock picking.