Morgan Stanley and Nomura aren't seeing eye to eye on where SK hynix's and Samsung's AI memory chips are headed.
Morgan Stanley just slashed its target price for SK hynix by 38%, worried about too many chips flooding the market and delays in data-centre construction in 2028 (with about 4.9 GW of capacity shifted from 2028 to 2029).
Meanwhile, Nomura is sticking with its higher targets, showing more confidence in the companies' outlook.
Banks expect strong earnings next year
Morgan Stanley thinks oversupply could hurt profits down the line and has lowered its expectations for data center growth.
But both banks still expect strong earnings next year.
On the flip side, Nomura points out that SK hynix has agreements covering more than half of its projected production capacity for 2027 and 2028, though it admits prices will depend on how the market shapes up.