# Bank of America Sees Hong Kong Investors Turning Bearish on Memory Stocks By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/50671 Published: 2026-11-07T07:38:57.000Z Updated: 2026-11-07T07:38:57.000Z Section: Investing > The bank expects memory makers to sustain strong margins and cash flow despite price declines, with low-single-digit NAND cuts starting in the first quarter of 2027. Bank of America sees Hong Kong investors turning more cautious on memory-chip makers over AI spending, memory prices and Chinese competition, while forecasting resilient margins and cash flow. The bank expects memory producers to sustain strong margins and free cash flow even as average selling prices decline. It forecasts modest DRAM price declines later and a low-single-digit drop in NAND prices starting in the first quarter of 2027. Bank of America sees no signs of supply agreements being canceled and considers it too early to expect customers to cut orders. Long-term supply agreements, which often run for five years, support planned data-center construction. The assessment builds on Bank of America’s earlier view that memory shares had fallen more than business fundamentals warranted, as discussed in [an earlier report on the memory-chip selloff](). ## Links in this article - [an earlier report on the memory-chip selloff](https://www.tokenpost.com/news/investing/33665)