Piper Sandler Sees DRAM, NAND Pricing Decline Set To Weigh On Micron - Read Why

Loading...
Loading...
  • inSpectrum released its June 2022 monthly memory contract pricing. DRAM 8Gb DDR4 and NAND 256Gb TLC declined M/M moderately, in line with Piper Sandler's expectations. 
  • Piper Sandler monitored the three-month rolling average Y/Y change to better gauge trends. Based on this metric, DRAM pricing declines accelerated, down 17% Y/Y, while 256Gb TLC NAND fell for the first time since mid-2021 (down 5% Y/Y) and 512GB SSD declined 4% Y/Y, similar to recent months.
  • Analyst Harsh Kumar noted that Micron Technology, Inc MU generates ~70% of its revenue from DRAM, posing a risk as the three-month rolling average continued to decline on a Y/Y basis. 
  • In addition, he noted that this is the fourth month in a row where the rolling average has shown year-over-year declines. 
  • For NAND, pricing for 256Gb TLC declined 7% M/M, and the three-month rolling average fell 5% Y/Y. 
  • He noted that these dynamics could pose a significant headwind to revenue growth as they move through calendar 2022, mainly as mobile and notebook end-markets face continued weakness. 
  • Price Action: MU shares traded higher by 0.16% at $56.11 on the last check Thursday.
  • Photo via Wikimedia Commons
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...