Don’t Expect DRAM Prices to Rebound in the Second Half

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

By William Trent, CFA of Stock Market Beat

DRAM prices head for the toilet

Those clever folk at Gartner say the price of 512-Mbit DDR2-based chips has tumbled by 44 per cent this year, already.And average DRAM spot prices were down to $3.67, last week, a 39 per cent since the beginning of 2007, according to the market watchers.

Firms have been pumping out DRAM chips expecting the market to chew them up to run Vista on. The over-supply has sent prices tumbling. Vendors reckon demand will kick in later this year to help prop up prices.

Or, more likely, vendors hope demand will kick in later this year. Furthermore, with all the new supply being added it is unlikely to be absorbed even if demand does pick up. We don’t thing prices will rebound in 2007, although the stocks may bottom this year ahead of the bottom in industry fundamentals.

http://www.stockmarketbeat.com/

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Our $500K AI Portfolio

See us invest in our favorite AI stock ideas for free

Our Investment Portfolio

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618