01-15-2018, 09:47 PM
https://www.techpowerup.com/240631/the-b...estor-fear
Quote:This 5% drop in pricing has prompted industry analysts to review their profit estimates for 2018, and expect that the memory industry's growth rate will fall by more than half this year to 30 percent. You read that right - investors are scared because growth rates will be 30 percent instead of 60 percent. Oh the joys of inflated pricing, and slower-than-usual ramp-up to keep demand higher than supply. The joys of economic capitalism, where prices for consumers go up, and an industries' value skyrockets by more than 70$ in a single year (2017).
This news led to a knee-jerk reaction from investors and the stock market for memory manufacturers as a whole, though; Samsung shares dipped 7.5 percent last week, while SK Hynix's fell 6.2 percent (January 6th seems to be the tipping point). But analysts say that there is unlikely to be a sudden crash, and that 2018 should still be a relatively stable year for chipmakers. This is due to the ever increasing memory demands of smartphones - average DRAM memory of new smartphone models launched last quarter increased by 38 percent from the second quarter of 2016, while NAND content measured by gigabyte jumped a staggering 84 percent, according to an analysis by BNP Paribas, as reported by Reuters.