Samsung's plan to cut memory chip production signals a potentially sooner-than-expected recovery for the broader memory chip market, according to Wall Street.
Investors seemed to laud the news, sending shares of Micron Technology and Western Digital up about 8% each on Monday.
Citi analyst Christopher Danely called the news a "huge positive" for the dynamic random access memory, or DRAM, industry.
But while the cuts from Samsung should help ease some pricing pressures, caveats persist, with Morgan Stanley's Joseph Moore expecting a "fairly muted" upturn from the production cuts and slow margin recovery even in 2024.
"Investors are much more excited than industry contacts around this, given obvious green shoots implied from production cuts," he wrote.