Citi sees ‘continued decoupling’ in memory pricing, calls SK top buy

Citi says December personal computer DRAM contract price remained flat month-over-month, while conventional NAND saw a reduced decline, according to TrendForce. However, TrendForce predicts a further price erosion of 8%-13% quarter-over-quarter, versus 5%-10% previously, in Q1 of 2025, the analyst tells investors in a research note. Citi expects “continued decoupling” in memory pricing based on its 2025 mobile and PC DRAM selling price growth projections of down 9% and 15% year-over-year, respectively, and server and graphics DRAM selling price growth forecasts of up 13% and 63% year-over-year, respectively, in 2025. This “clearly shows the decoupling trend between conventional and premium memory,” the analyst points out. Citi names SK Hynix (HXSCL) its top buy in global semiconductors and recommends selling Nanya Technology (NNYAF). Other names in the memory space include Micron (MU), Seagate (STX), and Western Digital (WDC).