Micron dips on memory-price peak fears; fresh WSTS data shows DRAM +8%, NAND +5% in August
What happened
Micron Technology (MU) shares were down 1.2% at $1,061.81 in early trading Monday, still contending with fears of a cyclical peak in memory prices after a lackluster post-earnings reaction last week. But fresh industry data tells a different story: World Semiconductor Trade Statistics showed memory sales rising 36% in August, driven by both stronger shipment volumes and pricing, with DRAM prices up 8% and NAND up 5%. Analysts expect the boom to continue — Brad Gastwirth of Circular Technologies forecasts DRAM prices rising 15-20% in Q4 and NAND 12-20%, writing that 'pricing continues to move higher even as consumer end markets weaken, while long term supply agreements remain a major part of customer conversations.' DRAM makes up about three-quarters of Micron's revenue.
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Start your free 14-day trialWho’s affected
- MU — down 1.2% at $1,061.81 early Monday; the stock looks cheaper on forward earnings as prices rise, but the market remains skeptical
- Memory peers (Samsung, SK Hynix) — read-across from the peak-cycle debate
- NVDA — Rubin Ultra memory de-specing risk cited by BNP Paribas is one channel of the memory-peak bear case
Sources