Bank of America: U.S. listed storage stock valuations are exhibiting cyclical bottom characteristics, with market concerns being overblown

Bank of America believes that the recent correction of U.S. listed storage stocks has largely decoupled from fundamentals, valuation multiples have already bottomed out, and market fears of a shift from an AI storage boom to a recession are excessive. The bank projects that average selling prices, revenue, and profit margins of memory chips will remain at supercycle levels from 2027 to 2028; even if earnings growth slows, absolute levels will still stay close to historical highs.

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