Memory stock prices have had the wind knocked out of them this month as several negative catalysts have converged to rock this suddenly volatile group. The boom lifted many cyclical companies to unprecedented heights, driven by insatiable demand from hyperscalers. But for the first time in a while, cracks have appeared in the story. Valuations among memory chip makers are stretched, price hikes are facing pushback, and Chinese memory producer ChangXin Memory Technologies is threatening to upend the market with a massive $8.6 billion IPO in Shanghai. Is the memory trade about to be disrupted? Not so fast, my friend.
