- Digitimes reports DRAM spot prices continue to jump, with recent quotes "soaring more than 5% on a single day." Tight supplies (caused in part by the SK Hynix fire), PC OEM inventory replenishment, and order pull-in from Chinese tablet vendors are said to be contributing factors.
- Naturally, spot price strength is expected to bolster contract pricing, whose growth has been tempered somewhat by attempts from SK Hynix and peers to adjust capacity in the wake of the fire.
- The report backs up recent comments Morgan Stanley's Joseph Moore, who has reported seeing a pickup in orders from the PC supply chain.
- Also: Both Taiwanese DRAM vendor Nanya and Micron/Nanya's Inotera JV have reported strong November sales. Nanya's sales rose 34% Y/Y to NT$3.85B ($130M), and Inotera's sales rose 117% to NT$6.46B ($218M).
- Aided by a favorable supply/demand balance and healthy mobile DRAM growth, the DRAM industry is expected to perform well again in 2014, though growth is expected to slow from 2013's levels. DRAMeXchange forecasts sales will rise 14% to $40B, after growing 32% in 2013.
- Micron (MU +3.9%) is making new 52-week highs, and SanDisk (SNDK +1.6%) is also up. Though not a DRAM vendor itself, SanDisk benefits from DRAM strength to the extent NAND capacity gets reallocated for DRAM production. Samsung (SSNLF, SSNGY) rose 1.8% overnight in Seoul, and SK Hynix (HXSCL) rose 2.4%.
at CNBC.com (Nov 17, 2014)