According to data just released this morning from DRAMeXchange, revenues in the global DRAM market popped by 13.4% sequentially to $14.1 billion for the quarter ended March 2017. PC DRAM prices rose by a whopping 30% in the quarter, spurred by demand from OEMs/ODMs, which led to an all-time record high for revenues in the sector.
Samsung led the global DRAM market in Q1:2107 with revenue growth of 6.8% sequentially, while number two player Hynix grew its revenues in Q1 by 21.5%. Samsung held a 44.8% share of the global DRAM market followed by Hynix with a 28.7% market share.
However, it was Micron that took the spotlight amongst the top 3 in Q1:1,7 with a 22.3% revenue growth (highest revenue growth amongst the Top 3 players) and a 21% share of the global DRAM market.
Micron maintained its #3 position as the world's Top DRAM vendors.
DRAMeXchange said that PC DRAM module pricing for the March 2017 quarter was up 30% sequential quarter-on-quarter, while prices for mobile DRAM grew by almost 10% also sequentially.
Sales in the global DRAM market surged 13.4% sequentially to $14.13 billion in the first quarter of 2017, when PC DRAM contract prices rose 30%, according to DRAMeXchange. The revenues for the quarter were also a record high.
Global supply of DRAM has fallen short of demand drastically since late last year, and that has led PC OEMs to start negotiating contracts well in advance providing clear visibility to companies like Micron going forward.
"From the supply side, additional DRAM manufacturing capacity will become available in this years second half at the earliest mainly to meet the demand related to shipments of new smartphones and PCs during that period," said Avril Wu, research director of DRAMeXchange.
"As for this second quarter, the mobile DRAM market has cooled down temporarily, but the server DRAM market is still quite hot," according to Wu. "DRAMeXchange anticipates product prices will again go up significantly in both PC and server DRAM markets, with their respective average increases exceeding 10% from the first quarter.
So yet again, we have clear signals that the good times will continue for the DRAM/NAND players, like Micron and the rest, going forward.
The question is whether astute investors spot the opportunity in Micron now or wait till the shares are 10-15% higher to jump in.
Shares of Micron closed at $27.48 last night.
(Long mu, long and short mu options)