Micron shares slipped 1% in early Friday trading after a week of ups and downs. The stock climbed from below $660 to a 4.1% gain on Thursday, but then fell back by Friday morning. This week, the memory chip sector was influenced by remarks from a competitor’s CEO, a narrowly avoided strike at Samsung, and a major manufacturing achievement by Micron. Here’s a look at what happened and what it could mean for the memory chip market next week.
On Friday, Micron said it has started making 1-alpha DRAM at its Virginia plant, calling it the most advanced memory ever made in the United States. The CEO described this as a key part of Micron’s $200 billion plan to grow memory manufacturing and research in the U.S.
The week’s market swings started Monday after Seagate Technology’s CEO told investors that expanding factories to meet storage demand would take too long. This led to a selloff in memory and storage stocks. However, Circular Technologies’ head of research disagreed in a note, saying Seagate’s comments actually suggest a better supply and pricing outlook, since limited capacity could keep memory prices higher.
A strike threat at Samsung that had been growing for weeks ended late Wednesday when management and union leaders agreed on bonus pay just hours before a walkout was set to start. The union put the strike on hold from May 21 to June 7 while members vote through May 27. Even with the deal, Samsung shares dropped 2.3% in Seoul on Friday, which suggests investors had already expected the supply relief.
