From The Motley Fool · Keithen Drury · · 1m
Micron and Sandisk Cyclicality Shift
Memory chip giants Micron and Sandisk may break memory market cycles with new pricing deals.
In brief
Memory chip giants Micron and Sandisk may break memory market cycles with new pricing deals. Micron and Sandisk are now using long-term contracts to reduce memory chip price volatility. Originally reported by The Motley Fool.
Memory Market Cycles
The memory chip market has a history of being extremely cyclical.
Sandisk and Micron Stocks
Sandisk (SNDK +3.92%) and Micron (MU +2.77%) face cyclical pricing threats.
Two Memory Types
DRAM and NAND are the two primary memory chip types with different uses.
NAND Memory Market
NAND memory pricing is driven by supply and demand without significant differentiation.
Micron's HBM Deal
Micron signed a deal with Nvidia to develop custom HBM for GPUs.
Long-Term Pricing Agreements
Both companies use contracts to lock in pricing for years, reducing volatility.
Market Valuation Shift
The market may value Micron and Sandisk more like regular tech stocks now.
The short version
Micron and Sandisk are now using long-term contracts to reduce memory chip price volatility.
