The memory chip market has become one of the key bottlenecks in AI infrastructure. Growing model sizes and the proliferation of AI agents could further boost demand, while meaningful new supply is not expected to hit the market until late 2027. As a result, the tight market conditions may persist in the coming quarters. Although the sector remains cyclical, we believe the current cycle could be longer and stronger than previous ones, which, combined with low valuations, could present an attractive investment opportunity. In the second part of our series analyzing the fundamentals of the semiconductor sector, we examine the memory chip market.
European markets have reached key support levels thanks to the recent corrections. However, the downturn has not yet given way to a turnaround. This is confirmed by our screening list, which shows few or no promising opportunities. In such a market environment, momentum-based turnaround strategies are typically less effective, which is why, once again, only a few companies met our screening criteria. From the list, we highlighted the German life sciences and biotechnology company Sartorius AG, which develops and manufactures laboratory and biopharmaceutical production equipment, as well as related services. We see a long-term turnaround opportunity, so seeking long positions may be worth considering.
The dollar continued its trend of strengthening against the euro and the pound. It hit a new swing low against the euro and may be approaching strong support against the pound. The forint has shown a slight weakening in recent days, a trend that may continue this week. The rise in USD/JPY stalled amid the downtrend. The EUR/CHF exchange rate remained in an uptrend after testing the breakout level.
The exchange rate is in a downward trend and has reached the next support level at 1.1352. Since it has hit a new swing low, the possibility of a reversal is being pushed back. The next strong support level is expected around 1.1230. A break above the red trend line could pave the way for an uptrend, but this could still take several weeks.
Resistance levels: 1.1719; 1.1841; 1.1962; 1.2085; 1.2207.
Support levels: 1.1230; 1.1108.
The downtrend is slowly approaching the key support level at 1.3184. A pause is expected at this level, but a reversal pattern or a break below the thick red trendline would be needed for a trend reversal.
Resistance levels: 1.3672; 1.3916; 1.4160.
Support levels: 1.3307; 1.3184; 1.2939; 1.2812.
Following a minor decline, the trend is once again characterized by a slight upward wave. On the downside, the 351–355 zone could serve as very strong support, while on the upside, the 375 level represents strong resistance. Price action is likely to remain within this range in the coming weeks.
Resistance levels: 375; 382,8; 390,6.
Support levels: 359.4; 355.5; 351.56; 343.75.
Due to the new swing high, the structure is bullish. On the downside, 312.5 is an important pivot support level, while on the upside, the market is theoretically open. The rising green trendline drawn from the low may provide support from below. As long as the price remains above this trendline, it’s worth favoring long positions. The first strong resistance level is around 328.1.
Resistance levels: 320.4; 328.1; 335.9; 343.75; 351.5; 359.38.
Support levels: 312.5; 304.7, 296; 289.2; 281.25.
After a strong retest, the downtrend line remains intact, so the trend is still bearish. If a new downward wave fails to reach a new swing low, there could be a chance for a reversal later on. The downtrend currently runs along the 159.38 level.
Resistance levels: 162.5; 165.63; 168.75.
Support levels: 153.13; 151.56; 150.
A structural shift occurred a few weeks ago, following which we saw deep retests around 0.93, but no trend reversal. 0.9521 remains the minimum expected target price. The structure is still bullish; 0.9277 should not fall below this level.
Resistance levels: 0.9521; 0.9644; 0.9766.
Support levels: 0.9277; 0.9155; 0.9033; 0.8911.
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