The global memory crunch isn't easing — it's tightening further and according to Goldman Sachs this is setting up a pricing environment that could push earnings and margins toward cycle highs for players in this sector.
Memory chips — especially DRAM, NAND and high‑bandwidth memory (HBM) — are headed into one of the tightest supply/demand landscapes in over a decade, according to Goldman Sachs analyst Giuni Lee in a research note shared Monday.
Why The Global Storage Crunch Looks Far From Over
Goldman Sachs now expects 2026–27 DRAM undersupply of roughly 4.9% and 2.5%, respectively, well above prior forecasts, and NAND undersupply of about 4.2% and 2.1%.
That’s "the most severe one during the last 15+ years," Lee said.
Server memory — including conventional DRAM, SOCAMM and HBM — is now the dominant driver of global DRAM demand.
With strong deployment in AI servers and data centers, server‑related memory is forecast to make up more than 50% of total DRAM demand in 2026 and 2027.
While server-related memory demand continues to rise sharply as data center workloads become more memory-intensive, growth tied to personal computers and smartphones is slowing under the pressure of higher component costs.
Enterprise storage demand is also accelerating. Goldman estimates that usage of enterprise solid-state drives is growing at a pace that far exceeds the broader market, reflecting the need to store and retrieve large volumes of AI inference data.
Why Memory Pricing Could Soar Further
Goldman Sachs now anticipates conventional DRAM pricing up about 176% year‑over‑year in 2026, with average selling prices approaching historically strong levels.
Operating margins for major memory producers — especially for DRAM — are forecast to reach 70%‑80%, near record territory.
NAND pricing is also expected to rise, though more moderately. The firm sees 100%‑120% year‑over‑year price gains in 2026 and strong operating margins above 40% for major producers.
These 7 Memory Stocks Still Have Upside, Goldman Says
Samsung Electronics (OTC:SSNLF) sits at the center of Goldman's call due to what Lee described as "outsized exposure" to conventional memory. Goldman expects 2026 operating profit to "more than quadruple" to over 180 trillion won.
“We believe the company will continue to enjoy significant earnings upside given our continued expectation of a much stronger conventional memory pricing increase starting 1Q26 and continuing throughout 2026,” Lee said.
SK Hynix Inc. remains Goldman's preferred AI-memory lever. Lee wrote the firm expects "an unprecedented operating margin level" this year, with DRAM margins in the high-70% range.
“Adding the announced measures such as buybacks/dividends/potential ADR listing that could lead to upside in shareholder value,” Lee said.
SanDisk Corp. (NASDAQ:SNDK) is Goldman's NAND-focused pick. Lee wrote the firm expects "meaningful upward revisions" to earnings as supply stays tight and enterprise demand accelerates.
“Our 12-month target price is $700,” which still implies a 20% surge from current levels.
Micron Technology Inc. (NASDAQ:MU) did not receive a Buy rating, but it still made Goldman's key list for the trade. Lee kept Micron at Neutral and wrote the company could capture roughly 20% share of HBM.
“We would consider being more constructive on the stock if we see continued supply growth discipline across the industry into 2027,” Goldman added.
Other memory-linked stocks with upside potential mentioned in the Goldman’s report were Tokyo Electron Ltd. (OTC:TOELF) , Ulvac Inc. (OTC:ULVAF) and Disco Corp. (OTC:DISPF).
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