UBS | Memory: Is the Wall of Worry Justified? → UBS sees the 19% memory sell-off as an opportunity, not a fundamental deterioration. Agentic AI is driving stronger-than-expected server DDR5 orders into 2027, while Nvidia's SOCAMM demand has reportedly risen above 50bn Gb, exceeding combined PC and GDDR DRAM bit consumption. HBM de-specing is also shifting demand toward conventional DRAM and NAND for inference/KV cache. → Supply fears look premature despite Samsung and CXMT expansion. UBS expects Samsung to add 120k wafers/month of DRAM capacity by 4Q27, potentially accelerating beyond 150k in 2028, but sees limited supply-demand impact until late 2028. Yap: Although memory fundamentals remain strong, it goes to show how significant a directional shift in news flow can be for price action when there are no more marginal buyers. Remember, tops form over time and should not be characterized by a single day, while fundamentals will often be a lagging indicator. Rather, the initial shift in directional headwinds can seem relatively insignificant at the time (particularly when a trade is extremely crowded). We saw this with the initial June sell-off on AVGO earnings and AI financing concerns, which have since been exacerbated as of late.