๐จ ESMT: Could This Be The Next Memory Stock To Watch? ๐๐ฅ
Serenity is turning bullish on Elite Semiconductor Memory Technology (ESMT), comparing its current setup with the early strength seen in Sandisk.
The key catalyst? ๐พ Rising memory prices.
According to the comments, DDR2 prices are around $0.96 per chip, and a 3x increase in ASP could add roughly $2 to the cost of each chip. While that may have a limited impact on finished products, it could create a major boost to ESMTโs profitability if higher memory prices continue.
Even more interesting ๐ โ SLC NAND ASPs are expected to rise 120%โ170% in H2, while NOR Flash and other memory products are also facing potential price increases.
Serenity estimates ESMTโs monthly net profit at around $111M based on July results, against a market value of roughly $2.8B.
That creates an interesting valuation-re-rating story. ๐
โ ๏ธ But the biggest risk is simple: memory pricing is cyclical. If prices reverse, margins and earnings expectations could fall quickly.
๐ฅ Bull case: rising ASPs + strong profits + valuation re-rating.
Not financial advice. DYOR.
#ESMT #Memory #Semiconductors #NAND #DDR2 #Stocks #TechStocks
Serenity is turning bullish on Elite Semiconductor Memory Technology (ESMT), comparing its current setup with the early strength seen in Sandisk.
The key catalyst? ๐พ Rising memory prices.
According to the comments, DDR2 prices are around $0.96 per chip, and a 3x increase in ASP could add roughly $2 to the cost of each chip. While that may have a limited impact on finished products, it could create a major boost to ESMTโs profitability if higher memory prices continue.
Even more interesting ๐ โ SLC NAND ASPs are expected to rise 120%โ170% in H2, while NOR Flash and other memory products are also facing potential price increases.
Serenity estimates ESMTโs monthly net profit at around $111M based on July results, against a market value of roughly $2.8B.
That creates an interesting valuation-re-rating story. ๐
โ ๏ธ But the biggest risk is simple: memory pricing is cyclical. If prices reverse, margins and earnings expectations could fall quickly.
๐ฅ Bull case: rising ASPs + strong profits + valuation re-rating.
Not financial advice. DYOR.
#ESMT #Memory #Semiconductors #NAND #DDR2 #Stocks #TechStocks