Report
Pierre FerraguÊ

Bible 2Q23 – Memory: bottom confirmed, but recovery will take time.

Today, we are publishing the Memory section of our 20th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 130 companies we track, providing an update on our key perspectives and convictions. In the coming weeks we will publish sections on Smartphones, Automotive, Cloud Infrastructure, Telecom Equipment, Industrials, PCs, Enterprise IT, Ride sharing & Delivery, Foundry, and Semicap Equipment.
Memory is undergoing the steepest correction on record since 2008, but sell-in demand has bottomed and manufacturer inventories are now coming down slowly. It will take time for the manufacturers' utilization rates and profitability to recover, as inventories are still double the normal levels, but the recovery is now in motion. It is not fully reflected in stock prices and we recommend to be long Memory for the remainder of 2023.
Underlyings
Micron Technology Inc.

Micron Technology provides memory and storage solutions. The company's portfolio of memory and storage technologies include Dynamic Random Access Memory, Not And, 3D XPoint? memory, and Not Or. The company's segments are: Compute and Networking Business, which includes memory products sold into client, cloud server, enterprise, graphics, and networking markets; Mobile Business, which includes memory products sold into smartphone and other mobile-device markets; Storage Business, which includes Solid-State Drives and component-level solutions sold into enterprise and cloud, client, and consumer storage markets; and Embedded Business, which includes memory and storage products.

Samsung Electronics Co Ltd

Samsung Electronics Co. Ltd.

Samsung Electronics is engaged in the manufacture and sale of electronic goods, communication products, semiconductors, telecommunication equipment, home appliances and other similar products. Co.'s products are mobile phones, MP3 Players, DVD players, video equipment, including Blu-Ray, TVs and VCRs; household appliances, including microwave ovens, refrigerators, home air conditioners, washing machines, ultrasonic humidifiers, dehumidifiers, vacuum cleaners and other small electrical goods; audio equipment, including semiconductors, information systems, and computers; miscellaneous parts; other products, including automatic vending machines, refrigerated display cases and electric tools.

SK hynix Inc

SK hynix is engaged in the manufacture and sale of semiconductors and related devices. Co.'s memory semiconductors include dynamic random access memory ("DRAM") modules, multi-chip products (MCPs) and NAND flash memory semiconductors. Co.'s memory semiconductors are used for desktops, notebooks, smartphones, tablets, game consoles, MP3, PMP, USB drive, televisions, and digital cameras. Co. also develops non-memory semiconductors such as complementary metal oxide semiconductor image sensors used in digital imaging devices.

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New Street Research
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Analysts
Pierre FerraguÊ

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