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

  • 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
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