Memory Contract Prices Rise Month-over-Month
What's in Store for the Memory Product Space in 2016?
DRAM contract prices increase month-over-month
In this series, we’ll explore the factors affecting the prices of memory products—DRAM (dynamic random-access memory) and NAND (negative-AND)—and analyze the expected performance of companies in this sector for fiscal 2016.
In the table above we can see that the spot prices of 2GB (gigabyte) DRAM have decreased 3.4% from $1.17 in October 2015 to $1.13, whereas the spot price of 4GB DRAM increased 3.9% from $1.80 to $1.87 in the same period. The contract price of 2GB DRAM increased 10.5% from $0.86 to $0.95, whereas the contract price of 4GB DRAM increased 3.5% from $1.72 to $1.78.
32GB NAND contract prices increase month-over-month
In the above table, we can see that the spot prices of 32GB NAND have increased 5.5% from $2.01 in October 2015 to $2.12, whereas the spot price of 64GB NAND has increased 3.7% from $2.45 to $2.54 in the same period. The contract price of 32GB NAND increased 5% from $1.61 to $1.69, whereas the contract price of 64GB NAND increased 1.9% from $2.15 to $2.19. Major companies in the DRAM space include Samsung (SSNLF), Micron Technology (MU), SK Hynix (HXSCF), Nanya Technology, and Winbond Electronics.
To get exposure to Micron Technology, you can invest in the iShares PHLX Semiconductor ETF (SOXX) and the Market Vectors Semiconductor ETF (SMH). Micron Technology constitutes 3.1% of SOXX and 3% of SMH.
Browse this series on Market Realist: