The world is facing a shortage of computer memory (RAM) because AI chips from companies like Nvidia, AMD, and Google require massive amounts of specialized memory. These firms get priority access to supply.
Nearly all RAM is made by three companies: Micron, SK Hynix, and Samsung, which are seeing booming profits and stock gains as demand surges.
Memory prices are skyrocketing. TrendForce predicts DRAM prices will rise 50–55% in a single quarter, an unprecedented jump. Consumer RAM prices have already spiked dramatically.
AI chips use high-bandwidth memory (HBM), which is complex and expensive to manufacture. Producing HBM uses capacity that could otherwise make regular consumer memory (roughly a 3-to-1 tradeoff), tightening supply for laptops, phones, and gaming hardware.
New AI GPUs can contain hundreds of gigabytes of memory per chip, compared with only 8–12GB in a typical smartphone, multiplying demand.
Memory has become a bottleneck for AI performance — called the “memory wall.” GPUs often sit idle waiting for data, limiting speed and scalability.
Memory makers are prioritizing servers and AI customers over consumer markets. Some have exited consumer-focused products entirely.
Major electronics companies like Dell and Apple expect higher costs and potentially higher retail prices because memory now makes up about 20% of laptop hardware costs, up from roughly 10–18% last year.
Supply will remain tight for years. Micron says it is sold out for 2026 and is building new factories that won’t come online until 2027–2030.
Who Benefits Most Overall:
Memory manufacturers (Micron, SK Hynix, Samsung)
Reasons:
DRAM prices rising 50–55% in one quarter
AI HBM crowds out consumer memory (3-to-1 capacity tradeoff)
Long lead times keep supply tight for years
Semiconductor equipment suppliers (ASML, Lam, Applied)
Reasons:
New DRAM and HBM fabs won’t come online until 2027–2030
Equipment orders surge long before chips ship
AI chip leaders (Nvidia, AMD, Broadcom)
Reasons:
Memory is expensive, but AI compute remains supply-constrained
Customers optimize for performance, not component cost
Hyperscale cloud providers
Amazon (AWS),
Microsoft (Azure),
Google (Cloud & AI)
Reasons:
Can afford premium HBM pricing
Memory scarcity becomes a competitive moat
Smaller rivals struggle to secure capacity
Industrial construction & engineering firms (fab builds, power, cooling)
Utilities supporting energy-hungry data centers
Logistics & specialty materials suppliers
Reasons:
AI memory shortage drives capex super-cycle
Multi-year visibility on spending
Data-center infrastructure ecosystem
Relative Losers (by contrast):
Consumer electronics makers (PCs, smartphones, gaming)
OEMs like laptop manufacturers facing margin pressure
Consumers paying sharply higher RAM prices
Goldman Sachs’ top stock picks for 2026
Goldman named six stocks it believes are best positioned this year:
Coinbase (COIN) – Product rollouts strengthen its core business and expand its role in the crypto infrastructure ecosystem. Subscription and services revenue should reduce earnings volatility over time.
MongoDB (MDB) – Deepening strategic relevance in enterprise software and positioning as a foundational data layer for AI workloads, supporting long-term growth and improving margins.
Dick’s Sporting Goods (DKS) – Benefiting from health, fitness and athleisure trends and its Foot Locker acquisition, strengthening its footwear position and margins.
Visa (V) – Long-term winner with steady high-single-digit global card volume growth, fiscal stimulus tailwinds, and opportunities in value-added services and agentic commerce.
Mastercard (MA) – Similar growth drivers as Visa, with strong global network advantages and expanding services revenue.
Madison Square Garden Entertainment (MSGE) – Strong holiday demand, improving booking visibility, and a potential catalyst from the sale of the Theater at MSG tied to the Penn Station redevelopment. Goldman raised its price target to $60.
BMO Upgrades Marriott (MAR) to Outperform
Why BMO likes Marriott:
Price target raised: $370 (from $285) → implies ~14% upside.
Viewed as a more “offensive” growth play than Hilton due to:
Higher incentive management fees.
Greater exposure to high-end and international travel.
Revenue strength: Marriott’s RevPAR growth beat Hilton by ~180 basis points on average from 2023–2025 and is expected to continue outperforming in 2026.
Attractive business model:
Asset-light, royalty-based model.
Low capital intensity and strong cash flow generation.
~4% annual net unit growth.
Upside catalyst: Renewal of Marriott’s credit card program, which could boost EBITDA and is not yet fully priced into consensus estimates.
Analyst admits prior underestimation of Marriott’s growth durability and believes multiple expansion is still possible.
Truist Upgrades Lockheed Martin (LMT) to Buy
Why Lockheed looks attractive:
Price target raised: $605 (from $500) → ~17% upside.
Stock has lagged the S&P 500 over the past year, creating a compelling valuation entry point.
Trades at ~17x forward earnings, cheaper than:
S&P 500 (~22x),
Northrop Grumman (~20x),
RTX (~27x).
Reduced regulatory risk after the effective disbanding of DOGE oversight.
Tailwinds from:
Trump’s proposed $1.5 trillion military budget for 2027.
Continued geopolitical tensions and defense modernization.
Strong competitive moat and deep expertise in advanced defense systems.
Other Major Analyst Moves
Upgrades / Positive Views
CrowdStrike → upgraded to Buy (Berenberg).
Altria → upgraded to Buy (UBS).
Donaldson → upgraded to Buy (Jefferies).
Sphere → upgraded to Buy (Seaport).
Waste Management → upgraded to Buy (UBS).
Quanta Services → upgraded to Buy (Seaport, top large-cap pick for 2026).
FedEx → upgraded to Buy (Bank of America).
Southwest Airlines → upgraded to Overweight (JPMorgan).
SolarEdge → upgraded to Buy (TD Cowen).
Cleveland-Cliffs → upgraded to Overweight (Morgan Stanley).
Downgrades / Caution
Adobe → downgraded to Market Perform (BMO).
Mattel → downgraded to Neutral (Goldman).
GE Vernova → downgraded to Neutral (Baird).
Zillow → downgraded to Neutral (Mizuho).
Nucor & Steel Dynamics → downgraded to Equal Weight (Morgan Stanley).
Earnings Season: Stocks That Often Beat Estimates
Companies reporting next week that historically beat EPS estimates ≥65% of the time:
Goldman Sachs (86%)
JPMorgan Chase (82%)
Bank of America (80%)
Morgan Stanley (80%)
Taiwan Semiconductor (72%)
Delta Air Lines (69%)
Goldman’s New Picks in Senior Housing Real Estate
Goldman initiated coverage on two REITs tied to the aging population:
Ventas (VTR) – Buy
Price target: $94 (~25% upside).
Benefits from rapid growth in the 80+ population.
Expect rising occupancy (up to ~96% by 2028).
Strong data platform improving pricing and operations.
Active acquisition strategy and strong balance sheet.
Omega Healthcare Investors (OHI) – Buy
Price target: $54 (~21% upside).
Focused on skilled nursing and assisted living.
Tenant health improving after pandemic disruptions.
Strong acquisition pipeline and attractive ~6% dividend yield.
Overall Takeaway
Top bullish calls: Marriott, Lockheed Martin, FedEx, Quanta Services, CrowdStrike, Ventas, Omega Healthcare.
Themes driving optimism: Travel recovery, defense spending, aging demographics, infrastructure and power buildout.
Key risk: Investor sentiment and positioning are stretched, meaning markets could be more vulnerable to negative surprises — even as liquidity and stimulus keep the rally alive.
Walmart to join Nasdaq 100 on Jan 20 as AstraZeneca exits
Rio Tinto, Glencore in talks to form world’s biggest miner
HSBC wins Hang Seng shareholder backing for US$14 bil buyout
Shares of Alibaba Group Holding rose as much as 4.8% in Hong Kong on optimism that Chinese companies may soon gain access to Nvidia’s H200 AI chips. The rally followed reports that China could approve some imports of the H200 chips as early as this quarter.
Other Chinese AI-related stocks, including Kuaishou Technology and JD.com, also climbed more than 4%.
Investors expect access to the H200—an older-generation chip that the U.S. allows to be exported to China—to help firms like Alibaba upgrade and run AI models, improving their ability to compete with U.S. leaders such as OpenAI. More advanced Nvidia chips remain restricted under U.S. national security rules.
The Monetary Authority of Singapore has proposed legal and regulatory changes to enable a streamlined dual-listing pathway between the Singapore Exchange and Nasdaq, called the Global Listings Board (GLB). Public consultation runs until Feb 8, with the framework targeted to go live around mid-2026.
Subsidiary of AnAn International to acquire 60% equity in French company with interests in renewable energy company
ASTI Holdings proposes placement of 128 mil new ordinary shares for 2.5 cents per share raising $3.2 mil
ASTI Holdings proposes placement of 128 mil new ordinary shares for 2.5 cents per share raising $3.2 mil
Attika Group secures interior-fit out contracts worth a total of $38 mil
Unit of Bursa-listed Khind Holdings partners Coliwoo for redeveloped resort at 159 Jalan Loyang Besar
IHH Healthcare has finally cleared a major hurdle in its long-running investment in Fortis Healthcare after India’s regulator approved its mandatory open offer, ending seven years of legal uncertainty.
IHH increased its stake in Fortis to 31.17%, boosting effective control and enabling full operational focus.
The resolution lifted investor confidence, with IHH shares rising over 12% and hitting a record high in December.
India is now a key growth market for IHH, with plans to add 2,000 beds by 2028 and expand margins.
While competition and execution risks remain, Fortis gives IHH a platform in a fast-growing healthcare market.
Legal clarity has unlocked growth potential in India for IHH, driving share price gains and renewed optimism.
Reclaims Global has built a strong reputation as a go-to contractor for urgent, complex early-stage construction work, backed by experienced teams, trust, and disciplined execution. Since listing in 2019, the company has remained consistently profitable by prioritising margin over volume, targeting ~10% project margins instead of chasing risky low-margin contracts.
Reclaims operates in excavation, demolition, construction waste recycling, and logistics, benefiting from Singapore’s long-term infrastructure renewal plans and sustainability push under the Green Plan 2030. Its integrated model links demolition directly to recycling, aligning well with future green construction requirements.
Financially, the group delivered strong revenue and profit growth, maintained steady dividends, and raised capital conservatively to upgrade machinery and prepare for large projects such as coastal protection works. A recent freehold property acquisition further strengthens its long-term resilience.
Reclaims is positioning itself as a stable, sustainable infrastructure enabler, well placed to benefit from Singapore’s next phase of urban development.
UEM Group Bhd’s plan to take UEM Edgenta Bhd (KL:EDGENTA) private is advancing, with the board of UEM Edgenta set to table the proposed selective capital reduction and repayment exercise at RM1.10 a share for shareholders’ approval. Berjaya Securities Sdn Bhd has been appointed as the independent adviser to assess the fairness and reasonableness of the offer.
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