Serenity, known as the “white-haired stock guru,” said on X that Elite Semiconductor Memory Technology (ESMT, 3006) could perform strongly over the next few months and may follow the strong market performance of SanDisk (SNDK). Serenity cited continued room for memory-chip price increases, saying a DDR2 chip currently costs about $0.96 and that a threefold rise in average selling price would add roughly $2 to the cost of a single product. The increase would be relatively limited for end products, but sustained price increases in ESMT’s memory products could have a significant effect on the company’s profits. Serenity also said SLC NAND average selling prices are expected to rise 120% to 170% in the second half of the year, while products including NOR Flash also have price-increase expectations. Based on ESMT’s July performance, Serenity estimated its current monthly net profit at about $111 million and its market capitalization at roughly $2.8 billion, leaving substantial room for a valuation re-rating. Serenity compared ESMT’s situation with SanDisk in its early period, while saying the opportunity is concentrated in traditional and niche memory markets.
Serenity, known as the “white-haired stock guru,” said on X that he is bullish on Elite Semiconductor Memory Technology (ESMT, 3006) over the next few months. He said the memory-chip maker could potentially follow the strong performance of SanDisk (SNDK).
Serenity said a single DDR2 memory chip currently costs about $0.96. If its average selling price rises threefold, the cost of each product would increase by roughly $2. He said the increase would be relatively limited for end products, but sustained price increases in ESMT’s memory products could have a significant effect on the company’s profits.
SLC NAND average selling prices are expected to rise 120% to 170% in the second half of the year, according to Serenity’s post. Products such as NOR Flash also have price-increase expectations.
Using ESMT’s July performance, Serenity estimated the company’s current monthly net profit at about $111 million. ESMT’s market capitalization is about $2.8 billion, which led him to argue that its valuation still has substantial room for a re-rating.
Serenity said ESMT’s current situation reminded him of SanDisk in its early period, though he said the opportunity this time is concentrated in traditional and niche memory markets.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
