Citi reiterates buys on Micron, Samsung, SK Hynix as memory looks to recover
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Citi reiterated its buy ratings on memory chip makers Micron Technology (NASDAQ:MU), Samsung (OTCPK:SSNLF) and SK Hynix on Monday after developments in the memory market suggested it may recover later this year.
Analyst Peter Lee noted that the recent memory production cuts are likely to happen "gradually" and should help lower global inventories, thus leading to an average-selling price recovery for dynamic random access memory, or DRAM, after the third-quarter and after the fourth-quarter for NAND.
"...[W]e expect leading global memory makers to benefit from limited memory supply growth on industry-wide memory production cut and DDR5 demand upside in [the second-half of 2023]," Lee wrote in an investor note.
Last month, Samsung (OTCPK:SSNLF) announced that it would cut memory production by a significant amount, which some analysts said was the the "last piece" of the recovery.
Though Samsung did not disclose the exact level it would cut, Citi's Lee posited that it would cut DRAM levels by 20% and NAND levels by 15%. 
Micron (MU) and SK Hynix have previously
announced memory production cuts. 
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