North American Investors Cautious on Memory Sector Despite Optimism

Goldman Sachs recently visited North American investors in Toronto, Boston, New York, and San Francisco to gauge their sentiment on the memory sector. The feedback gathered from these visits indicates that North American investors are generally more optimistic about the storage industry compared to their Asian counterparts.

However, despite this optimism, investors have become more cautious regarding short-term price hikes and earnings expectations. They also hold differing views on whether long-term supply agreements can ensure stable profitability.

The absence of significant near-term catalysts and concerns over portfolio positioning are dampening the willingness of North American investors to increase their holdings in Samsung Electronics and SK Hynix, two major memory chip giants from South Korea.

Goldman Sachs analysts noted that investors have factored in the incremental supply from Chinese storage vendors into their investment models. Despite this, they still anticipate a pronounced tightening in the storage supply chain.