Memory chips and storage stocks have been on a wild ride lately, driven by the memory-demand boom. However, this rally has been cooled off lately when Google’s unveiling of its new “TurboQuant” AI memory compression sent DRAM and NAND stock prices tumbling. Even Seagate (STX), a hard-drive maker, pulled back as investors worried about memory demand. But JPMorgan tells investors to look past this noise. The firm just kicked off coverage of Seagate with an Overweight rating and a $525 price target, arguing that hyperscale data center spending and pricing tailwinds should drive strong growth.
In other words, JPMorgan sees the recent pullback as a buying opportunity rather than a red flag.
