Storage Stocks Rallied Across the Board, with SK Hynix Surging over 5%

Tiger Newspress09-08 21:43

Storage stocks rallied across the board, with SK hynix surging over 5%, Seagate Technology PLC up more than 4%, Western Digital and SanDisk Corp. both gaining over 2%, and Micron Technology rising more than 1%.

On the news front, South Korea's KB Securities warned that the memory chip shortage appears to be worsening, with Samsung Electronics and SK Hynix's memory chip inventories having fallen to less than 10 days of supply, and available supply next year is expected to be clearly insufficient. The brokerage firm estimates that DRAM and NAND demand in 2027 will therefore exceed supply by more than 10 percentage points.

Separately, South Korean media reported that Apple is in talks with Kioxia for a 3-to-5-year NAND flash memory long-term agreement, which may not include a price cap, marking a shift in its procurement strategy from "price suppression + multiple sourcing" to "volume locking + long-term contracts."

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