- Memory Crunch Deepens Chasm Between Stock Winners and Losers
May 13, 2026
(Bloomberg) -- The worsening shortage in global memory chips due to the artificial intelligence buildout is driving a widening gulf in corporate results and stock performances.
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Shares of memory makers Micron Technology Inc. and Samsung Electronics Co. have surged to record highs on blockbuster results driven by buoyant product prices. Meanwhile, consumer products makers from HP Inc. to Nintendo Co. have been weighed down by profit pressures stemming from higher chip costs.
The squeeze shows how AI is reshaping the chip cycle, turning memory from a commodity input into a critical bottleneck. That has made pricing power the dividing line in global equities: suppliers are posting windfall gains, while device makers face higher costs and weaker margins.
The crisis has been apparent in recent results. Memory pricing was mentioned more than 550 times in company earnings calls and quarterly reports so far this year — already more than any full year in data compiled by Bloomberg tracking global equities since 1999.
“It’s becoming increasingly obvious that the memory crunch is not only worse than feared but also becoming more prolonged than had been expected,” said Michael Brown, a senior research strategist at Pepperstone Group Ltd. in London. “With AI demand continuing to surge, what we now hear from those close to the issue is that we might see the crunch continuing in some manner potentially as far as 2030.”
Deeper Pain
Problems for memory-chip consumers have been widespread. Nintendo’s stock slid Monday after it warned of high memory costs hitting margins on its game consoles, pushing its shares down more than 30% for the year to date. Smartphone and electric-vehicle maker Xiaomi Corp.’s shares have slumped 20% in 2026 while copier and camera firm Canon Inc.’s are down 10% on similar concerns.
More manufacturers are resorting to price increases to cushion margins, even at the risk of hurting demand for their products. Nintendo last week said it will raise prices for its Switch 2, following hikes on Microsoft Corp.’s Xbox and Sony Group Corp.’s PlayStation 5 in previous months. Meta Platforms Inc. is boosting the prices of its virtual-reality headsets.
“The depth of pain tracks two factors: how much of a company’s cost base is memory, and how much leverage it has to secure supply or pass through prices,” said Fabien Yip, a market analyst at IG International. She sees high risk for smartphone and gaming console businesses, and medium risk for PC makers and hyperscalers.
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The story is much brighter for the memory makers, who are benefiting from rising chip prices amid insatiable demand. A Bloomberg gauge of memory stocks has surged about 120% so far this year, while a measure of consumer electronics shares is up around 3%.
Samsung recently joined the elite club of firms with a market value of over $1 trillion, after announcing a 48-fold jump in quarterly chip business profits last month. Its fellow high-bandwidth memory makers Micron and SK Hynix Inc. have also been extending stock-price gains following strong reports.
“Even beyond the first‑quarter earnings season, momentum in memory remains exceptionally strong,” said Simon Woo, head of Korean research and APAC technology research coordinator at BofA Global Research. “April data show Taiwan memory-related sales accelerating sharply, while Korea’s semiconductor exports were still up more than 100% year on year.”
Broadening Benefits
The pool of beneficiaries is growing as AI moves beyond the training phase to more mainstream applications. Investors are also now snapping up shares of makers of less-advanced DRAM chips as well as various flash and hard-disk drive products.
Sandisk Corp. has extended its gain for the year to more than 500% after higher NAND prices drove stronger-than-expected earnings. Shares of its partner Kioxia Holdings Corp. are up more than 360% on the year, ahead of its report due Friday.
The ongoing AI rally has raised some talk of a bubble, especially amid ongoing economic uncertainty caused by the Iran war. Chip stocks tumbled in the US on Tuesday as rapid recent gains spurred concerns of overheating.
Memory bulls argue that AI has spawned a “supercycle” for chip demand, well outside the industry’s traditional boom-and-bust pattern. Contract prices for NAND chips have surged more than 600% since the end of September, while those for DRAM chips are up nearly 400%, and analysts see the trend continuing.
“Pricing upside should persist as AI-led demand continues to outstrip supply, inventory is tight and HBM supply is locked up under multi-quarter price and volume agreements,” JPMorgan Chase & Co. strategists including Mixo Das wrote in a note dated Sunday. Prices and sales volumes may continue to rise in 2027-2028, they said.
--With assistance from Mayumi Negishi.
(Adds BofA comment in 11th paragraph)
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- Here's How Much You Would Have Made Owning Sony Group Stock In The Last 10 Years
May 12, 2026
Sony Group (NYSE:SONY) has outperformed the market over the past 10 years by 2.33% on an annualized basis producing an average annual return of 16.01%. Currently, Sony Group has a market capitalization of $131.57 billion.
Buying $1000 In SONY: If an investor had bought $1000 of SONY stock 10 years ago, it would be worth $4,341.85 today based on a price of $22.27 for SONY at the time of writing.
Sony Group's Performance Over Last 10 Yearscomp_fig
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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This article Here's How Much You Would Have Made Owning Sony Group Stock In The Last 10 Years originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Top Stock Reports for NVIDIA, Mastercard & AbbVie
May 12, 2026
Tuesday, May 12, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), Mastercard Inc. (MA) and AbbVie Inc. (ABBV), as well as two micro-cap stocks Waterstone Financial, Inc. (WSBF) and Precipio, Inc. (PRPO). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> CPI Inflation Rate Heats Up to +3.8%
Today's Featured Research Reports
Shares of NVIDIA have gained +70.1% over the past year against the Zacks Semiconductor - General industry’s gain of +79.1%. The company is benefiting from the strong growth of artificial intelligence (AI) and high-performance accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues.
The continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with more than 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicle space.
However, a limited supply of Blackwell GPUs may hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins. The U.S.-China tech war and rising competition from AMD remain major concerns.
(You can read the full research report on NVIDIA here >>>)
Mastercard’s shares have declined -12.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -24.2%. The company’s rebates and incentives are rising with new and renewed deals, and management expects operating expenses to keep growing as it funds safety, security, digital and B2B initiatives. Geopolitical disruption is weighing on cross-border travel. Valuation remains elevated, supporting a Neutral view.
Nevertheless, Mastercard’s scale and brand strength continue to support steady payment network growth, helped by stable consumer and business spending and higher transaction activity. Cross-border and contactless adoption remain key long-term drivers, and value-added services keep diversifying revenue through cybersecurity, analytics and digital authentication.
Partnerships and targeted acquisitions also extend reach into new payment flows, including stablecoin infrastructure. Share repurchases and dividends remain supported.
(You can read the full research report on Mastercard here >>>)
Shares of AbbVie have gained +13.3% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.6%. The company beats first-quarter estimates for both earnings and sales. It has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.
AbbVie’s neuroscience portfolio is also rapidly expanding and contributing significantly to top-line growth. AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals throughout 2026. It has been on an acquisition spree in the past couple of years to bolster its early-stage pipeline that should drive long-term growth.
However, the company faces several headwinds, such as Humira LOE impact, slowing oncology sales and continued macro headwinds for Aesthetics.
(You can read the full research report on AbbVie here >>>)
Waterstone Financial’s shares have outperformed the Zacks Financial - Savings and Loan industry over the past year (+50.3% vs. +16.7%). This microcap company with a market capitalization of $331.09 million delivered a strong earnings rebound in Q1 2026 as higher asset yields and easing funding costs expanded net interest margin to 2.97% from 2.47%, driving EPS growth. Mortgage banking returned to profitability, supported by a 31% increase in originations and a sharp refinancing recovery.
The company maintains strong capital and liquidity, with risk-based capital above 20% and substantial unused FHLB borrowing capacity. Management also remains shareholder-friendly through dividends and sizable buybacks, including authorization covering nearly 12% of shares outstanding.
However, risks include weakening credit quality, heavy near-term deposit repricing exposure, reliance on wholesale funding and rising operating expenses that could pressure margins if mortgage activity slows. Shares trade below peer valuation levels at 11.05X earnings and 0.95X book value.
(You can read the full research report on Waterstone Financial here >>>)
Shares of Precipio have outperformed the Zacks Medical Info Systems industry over the past year (+302.8% vs. -34.2%). This microcap company with a market capitalization of $50.81 million has its investment thesis centered on the scalability of its pathology platform and integrated lab-and-diagnostics model. Its core pathology business continues to demonstrate operating leverage, supporting margin expansion and stronger cash generation as volumes grow.
Management is also positioning the Products division for broader commercialization through expanded sales capabilities and distributor relationships. The hybrid operating structure supports recurring customer engagement and cross-selling opportunities, including the planned AML molecular testing launch.
However, the story remains execution-sensitive due to liquidity constraints and product-margin volatility. Investors must balance scalability potential against financing risks. Valuation levels imply a cautious market despite improving profitability, creating upside if execution improves.
(You can read the full research report on Precipio here >>>)
Other noteworthy reports we are featuring today include Toyota Motor Corp. (TM), Sony Group Corp. (SONY) and CVS Health Corp. (CVS).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Story Continues
Today's Must Read
NVIDIA's (NVDA) Data Center Biz Gains From Growing Adoption of GPUs
Accretive Buyouts, Strong Cash Flows Aid Mastercard (MA)
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Featured Reports
Value Chain and Structural Profit Initiatives Aid Toyota (TM)
Per the Zacks analyst, Toyota's value chain businesses have been growing significantly and are expected to continue expanding through 2030. The company is also pursuing cost reduction initiatives.
Strength in the I and SS Segment Aids SONY Amid G and NS Segment Weakness
Per the Zacks analyst, robust sales in the Music, Pictures and Imaging and Sensing Solutions segments are driving Sony's results. Softness in the Games and Network segment is concerning.
CVS Health (CVS) Banks on Health Services Strength, Macro Woes Stay
The Zacks analyst is impressed with the revenue momentum in CVS Health's Health Services segment, aided by pharmacy drug mix and brand inflation. Yet, macroeconomic pressures may hurt its growth.
Improved Product Mix to Aid Ford (F) Amid High Capital Requirement
Per the Zacks analyst, Ford's strategy of emphasizing higher-margin vehicles and trims is improving its profitability. However, rising capital requirements tied to EV development can hurt cash flows.
Global IT Infrastructure Benefits IQVIA (IQV), Liquidity Low
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Low liquidity remains a concern.
Improving Air Traffic Aid Curtiss-Wright (CW) Amid Labor Shortage
Per the Zacks analyst, Curtiss-Wright is likely to benefit from the improving air traffic. Yet labor shortage result in delays and likely impact operating results.
Scaled User Base Drive Duolingo (DUOL) Amid Margin Compression
Per the Zacks analyst, Duolingo's scale and rapid product iteration underpin long-term optionality and ensure stability. Advertising costs and broader AI rollout pressure the margin.
New Upgrades
Tapestry (TPR) Coach Brand Demand and Gen Z Drive Growth
Per the Zacks analyst, Tapestry's strong demand across regions and rising Gen Z engagement helped Coach add a record 2.4 million customers in Q3, reinforcing its path toward a $10-billion brand.
MKS (MKSI) Rides on AI-related Semiconductor Demand and NAND Upgrades
Per the Zacks analyst, MKS is benefiting from the growing demand in the Semiconductor and Electronics and Packaging markets, particularly in AI-related applications and NAND upgrades.
YPF Sociedad Anonima (YPF) to Benefit From Shale Oil Growth
Per the Zacks analyst, YPF Sociedad Anonima's shale oil growth and expected improvement in global crude prices will boost profitability. However, mature field operations continue to drag performance.
New Downgrades
Conagra (CAG) Margins Hurt by Inflation, Weak Operating Leverage
Per the Zacks analyst, Conagra's margins are hurt by inflation and weak operating leverage. In Q3, adjusted gross profit margin fell 112 basis points due to cost inflation and unfavorable leverage.
Strategic Acquisitions, Solid Liquidity Aid Fifth Third (FITB)
Per the Zacks analyst, Fifth Third's buyout of Comerica accelerated its long-term growth plan, enhancing scale, profitability and geographic reach. Also, robust liquidity is a positive.
Macro Woes and Paused Pricing Ail Planet Fitness' (PLNT) Prospects
Per the Zacks analyst, Planet Fitness faces softer net member growth as marketing resets, macro pressure, and competition weigh. A paused Black Card price hike and lower 2026 outlook pose concerns.
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Sony Corporation (SONY) : Free Stock Analysis Report
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- Wall Street Analysts Think Sony (SONY) Could Surge 39.74%: Read This Before Placing a Bet
May 12, 2026
Sony (SONY) closed the last trading session at $21.29, gaining 1.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29.75 indicates a 39.7% upside potential.
The mean estimate comprises four short-term price targets with a standard deviation of $5.68. While the lowest estimate of $22.00 indicates a 3.3% increase from the current price level, the most optimistic analyst expects the stock to surge 59.7% to reach $34.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SONY. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS SurpriseZacks Price, Consensus and EPS Surprise Chart for SONY
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
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That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in SONY
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 3.5%.
Moreover, SONY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SONY could gain, the direction of price movement it implies does appear to be a good guide.
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Sony Corporation (SONY) : Free Stock Analysis Report
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- Wall Street Analysts Think Sony (SONY) Could Surge 39.74%: Read This Before Placing a Bet
May 12, 2026 · zacks.com
The consensus price target hints at a 39.7% upside potential for Sony (SONY). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
- Why Sony (SONY) is a Top Momentum Stock for the Long-Term
May 12, 2026 · zacks.com
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
- Tech Weekly: Dua Lipa sues Samsung, robotic monk debuts
May 12, 2026
STORY: From Dua Lipa suing Samsung to a robotic Buddhist monk... this is Tech Weekly.:: Tech WeeklyBritish pop star Dua Lipa filed a lawsuit against Samsung, where she seeks at least $15 million in damages...She's accused the South Korean tech giant of using her image without permission to market its television sets.Lawyers argued it helped the company benefit from what seemed like her endorsement of the product.A spokesperson for Samsung declined to comment.A UK startup says its built an AI 'brain' which can teach humanoid robots new skills in days rather than months.The London-based firm Humanoid believes they could soon see the droids put to work in factories and warehouses.That so-called artificial "brain" helps the robot understand what it sees, process instructions and control its body.Artem Sokolov is Humanoid's CEO."We train, we build our own proprietary VLA model - vision-language-action model - that help the robot do different tasks in the real world with human speed." South Korea's first humanoid robot monk made its official debut at a Buddhist temple in Seoul.It came ahead of the Buddha's birthday.The robot, called Gabi, wore a traditional grey-and-brown Buddhist robe with black shoes.It also folded its hands and bowed to monks in charge of the ceremony.Nintendo shares slumped after investors sold off.The Switch 2 maker's outlook for the year underwhelmed the market.Nintendo also said it would raise prices of its Switch 2.But analysts argue its casual gaming audience is seen as particularly sensitive to such hikes.Rival Sony saw its shares fly up by a tenth.The PlayStation 5 maker had forecast lower sales but higher profit at its gaming business.One analyst said Sony was in a better position than Nintendo to pass the rising costs of memory chips to consumers.Sony also said it was planning a new joint venture to develop and make image sensors in Japan with TSMC as it tries to control costs.
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- Stock Market Today (LIVE): Inflation Roars Back as Tech Retreats; eBay Shoots Down GameStop Offer
May 12, 2026 · fool.com
Top insights from the latest market news from Tuesday, May 12, from The Motley Fool analysts on Team Rule Breakers and Team Hidden Gems.
- Sony's $4 Billion Bet on Rock & Roll Royalties
May 12, 2026 · marketbeat.com
A landmark $4 billion transaction sends a clear signal across capital markets: legacy music catalogs have definitively matured from niche alternative investments into an institutional-grade asset class. Sony Group NYSE: SONY, through a joint venture with Singapore's sovereign wealth fund GIC, has agreed to acquire the Recognition Music Group from funds managed by Blackstone NYSE: BX.
- onsemi is Facing a Continued Slowdown in SiC and Greater Competition in CIS from Sony
May 11, 2026 · 247wallst.com
Chart 1.
