Memory Shortages Expected to Last Until 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: CNBC
- Price Increases: The surge in demand for memory chips driven by AI infrastructure is expected to lead to continued price hikes, prompting consumer electronics companies to consider raising mobile phone prices by 2026, which could impact market competitiveness.
- Supply-Demand Imbalance: Sassine Ghazi, CEO of Synopsys, highlighted that the majority of memory demand is directed towards AI infrastructure, leaving other product markets starved for memory, which affects overall production capacity.
- Manufacturing Expansion Lag: Although major memory manufacturers like Samsung, SK Hynix, and Micron are expanding production, Ghazi noted that new capacity will take at least two years to come online, exacerbating the current supply crisis.
- Consumer Market Impact: Lenovo CFO Winston Cheng indicated that rising memory prices will affect the consumer electronics market, particularly in the lower-end segment, although the company benefits from a diversified supply chain to mitigate some risks.
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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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