Technology
Mobile Device Memory Chip Demand to Rise as PC Demand Falls
Published:
Last Updated:
To meet the memory requirements of those phones, Taiwan’s Digitimes expects demand for DRAM to top 400 million gigabits (50 million gigabytes) in the fourth quarter of 2013. That’s an increase of 35.5% over the third quarter and a huge jump of more than 70% year-over-year. For the full year, demand is forecast at 1.28 billion gigabits.
Offsetting the massive gains in mobile devices, Digitimes forecasts that slowing sales of desktop and laptop PCs will cut demand for DRAM in PCs by 3.5% quarter-over-quarter. For the full year Digitimes sees PC DRAM demand rising 6.8% to 17.34 billion gigabits.
DRAM makers like Micron Technology Inc. (NASDAQ: MU), Samsung Electronics, and SK Hynix are the beneficiaries of the overall increase in demand. A fire in Hynix’s Wuxi, China, plant earlier this month has lifted spot prices to a two-year high, though the plant is expected to resume production sometime next month and be at full production in November.
Micron shares have risen 25% since the Hynix fire, as 2 gigabit DRAM prices rose from around $1.60 to $2.27 per chip. Shares are up nearly 3% again today at $17.47 in a 52-week range of $5.16 to $17.59.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.