3 Stocks That Get Paid More When Memory Prices Rise. I'd Buy Only 1 of Them.
One of these chipmakers shipped only slightly more DRAM than the quarter before -- and revenue from those chips still rose 67%.
Overview
Memory chip prices set records this year, and they are still climbing. Research firm TrendForce said in early July that contract prices for both DRAM and NAND flash memory were already at all-time highs, and it expected more increases in the third quarter.
For most of the technology industry, those prices are a cost. But the companies that make memory collect them instead. In its latest reported quarter, Micron Technology (NASDAQ:MU) shipped only a low-single-digit percentage more DRAM than in the prior quarter -- and revenue from those chips still rose 67%.
Details
Micron, flash-memory specialist Sandisk (NASDAQ:SNDK), and DRAM giant SK Hynix (NASDAQ:SKHY) all get paid more for roughly the same output when prices rise. Each one's latest results show how much of the growth is price. And price, of course, is the part that can go away.
Source
Originally published at www.fool.com.