Micron and DRAM: A ‘Minor Correction’ in 2019?
Chip-stock analysts continue to like what they are seeing in the area of memory chips, such as #DRAM. But there could be a bit of a correction at the beginning of next year, one warns. The main positive bit of news today is the report overnight of comments by Nanya Technology (2408TW), a DRAM producer that has just 3% of the industry’s total DRAM supply. Nanya said it is going to “expand its wafer bit output by 48%,” according to an analysis of the report by Cowen & Co.’s Karl Ackerman. That rate of growth of supply is more than twice the industry’s total expected increase in supply this year of 20%.
“The visceral reaction,” says Ackerman, “is that this heightens risk of oversupply for 2018.”
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