Memory Chip Shortage to Last Until 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
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Source: Newsfilter
- Surge in Memory Demand: The boom in AI data center construction has led to a surge in demand for memory chips, causing price increases that are expected to persist until 2027, impacting pricing strategies for consumer electronics.
- Chip Supply Crunch: Sassine Ghazi, CEO of Synopsys, indicated that the memory chip shortage will continue through 2026 and 2027, with many other markets starved for memory due to capacity constraints, highlighting severe supply-demand imbalances.
- Price Increase Expectations: As memory prices rise, consumer electronics companies may need to raise product prices; Xiaomi anticipates mobile phone price hikes by 2026, while Lenovo's CFO is optimistic about passing costs onto consumers due to high demand.
- Market Cycle Shift: Analysts describe the current memory market as being in a “super cycle,” differing from historical supply-demand cycles, with Ghazi noting it is a “golden time” for memory companies, though it may pressure the lower-end market.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 481.630
Low
500.00
Averages
631.36
High
678.00
Current: 481.630
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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