This round of storage-chip gains is a bit intense. Micron is up 1,096 dollars, jumping 5% in a single day; SanDisk and SK hynix followed suit, and the Nasdaq also set a new closing high again.
The root is the contract price. The DRAM contract price rose about 50–60% quarter over quarter last quarter. Citigroup then raised its expectation for the full-year average price growth again. Now, the price of one kilogram of DRAM can buy 620 grams of gold. Smartphone makers were the first to feel the strain—some models had their high-memory variants cut from supply directly. When storage surged earlier this year, I thought it was just a normal cyclic-stock rebound. Looking back, this year basically hasn’t given me much of a chance to get in.
Some analysts have said Micron’s net profit for this fiscal year could exceed Microsoft. If you’re selling memory chips, the profitability needs to outdo selling systems. Two years ago, if someone said that, you’d only be able to treat it as a joke. Next, watch when the price hikes that start in servers finally trickle down to PCs and phones—the price tags in the stores will give the answer first.
The root is the contract price. The DRAM contract price rose about 50–60% quarter over quarter last quarter. Citigroup then raised its expectation for the full-year average price growth again. Now, the price of one kilogram of DRAM can buy 620 grams of gold. Smartphone makers were the first to feel the strain—some models had their high-memory variants cut from supply directly. When storage surged earlier this year, I thought it was just a normal cyclic-stock rebound. Looking back, this year basically hasn’t given me much of a chance to get in.
Some analysts have said Micron’s net profit for this fiscal year could exceed Microsoft. If you’re selling memory chips, the profitability needs to outdo selling systems. Two years ago, if someone said that, you’d only be able to treat it as a joke. Next, watch when the price hikes that start in servers finally trickle down to PCs and phones—the price tags in the stores will give the answer first.