When shares of Micron Technology (MU) traded as high as $ 1,255 earlier this month, selling pressure followed. MU stock found support at around $900 and closed at $979.30 on July 10.
Last week was a milestone for South Korean memory supplier SK Hynix. It listed its stock on the U.S. exchange at around a $1 trillion valuation. This happened as South Korea’s KOSPI entered a bear market on July 8.
The chances are good that the chip stock sell-off ended. Samsung (SSNLF) posted Q2 profits that included a one-time labour expense. Additionally, smartphone sales likely dragged overall results lower than investors expected.
Expect technology investors to overlook those headwinds. Since DRAM demand remains so strong even after companies have hiked prices by at least fivefold, Samsung plans to raise prices again.
According to a Chinese media outlet, Samsung will increase DRAM prices by around 20% in this third quarter. This week, the U.S. government will post consumer price index data. The report will show small increases in food and shelter costs, along with clothing and automobile prices. The report will not show the impact that DRAM prices will have on electronic prices.
Even if consumers cancel plans to buy any electronics, prices will still increase. AI server suppliers account for most of the DRAM demand.
