Micron, SanDisk stocks surge after Samsung hikes memory chip prices
Investing.com -- Micron Technology (NASDAQ:MU) stock rose 5% and SanDisk Corporation shares gained 6.6% Friday after reports that Samsung Electronics has significantly increased memory chip prices amid worsening supply shortages.
According to Reuters, citing sources familiar with the matter, Samsung, the world’s largest memory chipmaker, has raised prices of certain memory chips by as much as 60% in November compared to September levels. The price hikes come as global demand surges due to the AI data center boom, creating severe supply constraints in the semiconductor market.
Contract prices for 32 gigabyte DDR5 memory chip modules jumped to $239 in November from $149 in September, representing a 60% increase. Samsung also increased prices for 16GB and 128GB DDR5 chips by approximately 50%, while 64GB and 96GB DDR5 chip prices rose by more than 30%.
The South Korean tech giant reportedly delayed its formal announcement of October pricing for supply contracts, with many large server manufacturers and data center operators now facing extreme product shortages. Industry experts note that these customers are accepting they won’t receive sufficient product volumes and are paying substantial premiums to secure available supply.
DDR memory chips, which temporarily store data and manage rapid data transfers, are critical components in servers, computers, and other electronic devices. The current shortage and subsequent price increases could potentially impact costs for a wide range of products beyond data centers, including smartphones and personal computers.
The price hikes by Samsung appear to be benefiting other memory chip manufacturers like Micron and SanDisk as investors anticipate improved pricing power and profit margins across the industry amid the ongoing supply constraints.
