Morgan Stanley anticipates a significant growth in the memory industry's profits, projecting an increase of 35% to 40% by 2027, despite a potential short-term correction in stock prices. According to their July 6 Asia-Pacific Memory Technology Flash, the memory sector is nearing a peak in year-over-year price changes and earnings revisions. While short-term pressures may affect stock prices, the AI-driven memory bull market remains robust. The report suggests that market concerns over excess computing power among leading cloud vendors might be exaggerated, with future directions hinging on hyperscalers' capital expenditure decisions during the Q2 earnings season. Morgan Stanley advises focusing on DRAM and traditional memory opportunities, while cautioning against module manufacturers. Samsung Electronics and SK Hynix are expected to report Q2 operating profits of approximately 85 trillion and 65 trillion Korean won, respectively, aligning with market expectations.