Sony downgraded to Market Perform from Outperform at Bernstein

Bernstein analyst David Dai downgraded Sony (SONY) to Market Perform from Outperform with a price target of $22, down from $30. The firm says memory prices are expected to rise 7-times by the end of the year due to the rapid rise of AI memory demand. Memory is facing a supply shortage that is unlikely to be addressed anytime soon, the analyst tells investors in a research note. Bernstein believes higher memory prices put Sony’s PS5 hardware margins at risk and raises questions about PS6 as well. The firm thinks Sony will let PS5 hardware volumes decline as a way to manage hardware losses.