Citi Tells Investors to Buy the Dip in Memory and Chip Stocks
TLDR
- Citi says the AI memory upcycle is still in early stages and could outperform the 2001-2007 NAND cycle
- Micron, Samsung, and SK Hynix are all down more than 20% from recent highs
- Citi is buying AMD, Texas Instruments, and Applied Materials on the pullback
- High-bandwidth memory shortages are expected to push AI chipmakers toward deploying more GPUs per system
- Big Five cloud provider capex is forecast to grow 90% in 2026, supporting chip demand
Memory stocks have taken a hard hit recently. Micron, Samsung, and SK Hynix are all down more than 20% from their recent peaks.
The selloff came after a strong run, driven by concerns over high valuations and AI spending. But Citi strategists say the drop is a buying opportunity, not a warning sign.
Citi argues the current AI-driven memory upcycle is still in its early innings. They compare it to the 2001 to 2007 NAND cycle, when new devices like MP3 players and digital cameras created fresh demand.
This time, AI is driving demand for both DRAM and NAND at the same time. Citi says that makes the current cycle likely to outperform the earlier one.
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