Micron and SanDisk Shares Jump after OCZ Warns of NAND Shortage
Shares of memory chipmakers Micron and SanDisk jumped 5% to 8% just yesterday after SSD-maker OCZ revised its forecast for its second quarter earnings and warned of impending memory chip shortages.
Shares of Micron jumped 5.97% to $6.55 while SanDisk surged 8.0% to $43.85.
In reaction to surging sales of Apple products earlier this year, memory chip makers ramped up production leading to a glut of memory chips, which then led to decreased prices. As a result, chip makers are making adjustments to production to stabilize prices. In particular, Toshiba has announced in July that it would be slashing production by 30%.
In a note to clients, Citi analyst Glen Yeung mentioned that production reductions made by Toshiba and others in the industry have yet to be fully felt. One could therefore expect prices of NAND storage products to rise slightly in the coming months ahead.
Source: Mercury News