UBS chip analyst Uche Orji has turned cautious on the memory sector. He says a recent rebound in DRAM ASPs is not likely to be sustainable, with slowing demand ahead, and increasing risk of some NAND capacity being flipped over to DRAM production. Orji also remains negative on the NAND flash market, “due to persistent excess supply.”

“While we continue to believe the DRAM industry should see further improvements in demand in [the second half], we also think the fragility and sustainability of the current DRAM...