- CLSA notes that some Korean media outlets are reporting that Amazon's DRAM chips from Samsung (OTC:SSNNF,OTC:SSNLF) might have quality issues.
- Amazon is reportedly in talks with competitors including Micron (NASDAQ:MU) and SK Hynix (OTC:HXSCF,OTC:HXSCL) about potential replacements if a Samsung settlement isn't reached.
- CLSA analyst Sanjeev Rana says the problem could have serious implications for Samsung if it's not resolved, including customer refunds, DRAM inventory replacement at discount, market share loss, and litigation.
- Micron shares are up 4.5% to $41.12. DRAM peer Intel (NASDAQ:INTC) gains 1.2%.