The analyst predicts memory makers like Micron will get hit by oversupply. At the moment, the market is in an undersupply situation, but as is typical, the pendulum is expected to swing way to the other side.
UBS believes Micron is just two quarters removed from significant estimate cuts to its earnings per share. Over the next two years, around 170K wafer starts per month are expected. Computer enthusiasts and gamers can look forward to lower prices. The analyst predicts the extra supply could result in an over 50 percent decline in DRAM prices across six to seven quarters. The first price cuts are expected in the second half of this year.