Micron Is Rebounding. Goldman Prefers These Memory Stocks. — Barrons.com

What happened

Goldman Sachs said South Korean memory-chip makers SK Hynix and Samsung Electronics remain more attractive than Micron after a recent selloff. Its analysts favor comparing share prices with tangible book value, which excludes goodwill and other intangible assets, rather than relying on price-to-earnings ratios.

Confirmed

Global impact / market context

The choice of valuation measure changes how investors compare memory-chip makers. Micron can look inexpensive using expected earnings, but those earnings may fall when a cyclical boom fades. Goldman’s tangible-book approach instead focuses on assets remaining after intangible items are excluded, shaping its preference for South Korean peers.

Analyst inference

The article describes a recent selloff tied to fears that political opposition to data centers could slow artificial-intelligence demand, followed by gains in memory shares. Goldman says some global memory stocks are nearing historical valuation floors, while Samsung and SK Hynix are below total book value.

Confirmed

What to watch

1. Whether concerns about data-center opposition and artificial-intelligence demand persist, since weaker expectations could reduce memory-chip sales and earnings across the companies discussed. Analyst inference
2. How Micron, SK Hynix, and Samsung earnings develop through the cycle; falling profits would test whether low earnings-based valuations signal value or a temporary peak. Analyst inference
3. Goldman’s stated preference is for SK Hynix and Samsung over Micron, based on tangible book value, a measure that excludes goodwill and other intangible assets. Confirmed

Evidence

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