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Chipmakers are headed for a boom and these stocks could pop by 30%, investment bank says

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DRAM chips on display at the semiconductor exhibition SEDEX 2020 in Seoul, South Korea on Oct. 27, 2020.
Chris Jung | NurPhoto | Getty Images

Memory-chip producers are headed for a sustained boom and two stocks could pop more than 30% based on Japanese bank Nomura's latest prediction.

Sales of memory chips jumped in recent months as the Covid-19 pandemic accelerated the use of technologies such as cloud as well as spurred demand for electronic products including smartphones, computers and servers.

"We view this up-cycle not as a short-term recovery-driven one, but a super-cycle," Nomura analysts wrote in a Wednesday report as they upgraded the target prices for two major memory chipmakers.

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