Morgan Stanley Cuts NAND Price Growth Forecast to 5% Amid Rising Inventory

Analyst Shawn Kim turns bearish on memory chips, citing 13-week inventory and cooling demand. The report links potential KOSPI pullback to slowing NAND and HBM growth expectations.

Woofun AI reports that Morgan Stanley analyst Shawn Kim has adopted a bearish stance on the memory chip sector. The research indicates NAND module inventory has accumulated to approximately 13 weeks, reflecting cooled demand. Consequently, the firm projects NAND price growth will decelerate to roughly 5% in the fourth quarter, following two consecutive months of spot price declines. The report attributes supply-demand balancing to rapid capacity expansion by Changxin Memory Technologies (CXMT).

Additionally, it suggests a bearish outlook for DRAM if NAND weakens, while capping HBM market growth at approximately 40%. Analyst Jukan verified the report's authenticity, noting Kim's consistent views may be influencing the recent sustained pullback in South Korea's KOSPI index.