Memory stock valuations dropped by an average of 45% from their 2026 peaks while the Philadelphia Semiconductor Index pulled back 29%. A JPMorgan research report published by Cailian Press reveals that underlying DRAM and NAND flash supply constraints will keep industry fundamentals solid through 2028. Analysts conclude that downward earnings revisions for primary chipmakers remain unlikely over the next 6 months despite broader market anxiety over artificial intelligence investment returns.
Wall Street sold off semiconductor shares due to concerns over electrical grid limits, funding shortages, and delayed profits from artificial intelligence data centers. JPMorgan argues that these stock selloffs overlook physical inventory shortages. Long term purchase agreements continue to expand among enterprise clients. Available stockpiles of both DRAM and NAND memory chips stay constrained across worldwide supply routes.
Memory producers like SK hynix continue deploying advanced manufacturing capacity, including 1anm DRAM fabrication using EUV lithography systems. Long term contract coverage shields these manufacturers from near term revenue drops. JPMorgan expects tight supply balances to support pricing power and maintain corporate earnings stability over the next 6 months, extending the current memory cycle into 2028.
