ME News reports that on September 8 (UTC+8), “White-Haired Stock God” Serenity posted on X that she is bullish on Elite Semiconductor Memory Technology (ESMT, 3006) over the coming months, expecting its price movement to mirror the strong rally seen by SanDisk (SNDK). Serenity noted that the current price of a DDR2 memory chip is approximately $0.96; if the ASP (average selling price) triples, the cost per unit would increase by about $2. While this cost increase represents a relatively minor impact on end products, it could significantly affect ESMT’s profitability if memory prices continue to rise. Additionally, ASPs for SLC NAND are expected to surge 120% to 170% in the second half of the year, with similar price increases anticipated for products like NOR Flash. According to Serenity, based on July performance, ESMT currently generates a monthly net profit of approximately $111 million and has a market capitalization of around $2.8 billion, suggesting substantial room for valuation reevaluation. She compared ESMT’s current situation to SanDisk in its early stages, but emphasized that this opportunity is primarily focused on traditional and niche memory markets. (Source: ODAILY)
Analyst Predicts ESMT Could Mirror SanDisk's Surge Amid Storage Chip Price Hikes
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Summary
On September 8 (UTC+8), 'White Hair Stock God' Serenity posted on X that he is bullish on Elite Semiconductor Memory Technology (ESMT, 3006), citing potential price movement similar to SanDisk (SNDK). He noted DDR2 memory chip prices at $0.96, with a tripling of ASP adding $2 per unit. SLC NAND ASP is expected to rise 120%-170% in H2, boosting ESMT’s profit potential. July net profit was approximately $111 million, with a $2.8 billion market cap, offering strong upside potential for price appreciation.
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