Reuters: Global Markets: Micron, SanDisk jump after OCZ warns of shortage

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Micron, SanDisk jump after OCZ warns of shortage Sep 6th 2012, 16:24 Tweet Share this Email Print Related News Analysis: Friend and foe; Samsung, Apple won't want to damage parts deal Mon, Aug 27 2012 Elpida says it submitted Micron restructuring plan Tue, Aug 21 2012 Micron CEO sees higher NAND prices next year Mon, Aug 13 2012 Nvidia rides Tegra wave, beats on revenue outlook Thu, Aug 9 2012 Related Topics Hot Stocks » Asian Markets » Flags fly at half-staff at the main entrance to Micron corporate headquarters in Boise, Idaho, February 3, 2012. Credit: Reuters/Brian Losness By Noel Randewich SAN FRANCISCO | Thu Sep 6, 2012 12:24pm EDT SAN FRANCISCO (Reuters) - Shares of chipmakers Micron (MU.O) and SanDisk (SNDK.O) surged on Thursday after a solid-state drive maker warned of component shortages, increasing expectations that production cutbacks are tightening the market for flash memory chips. Shares of Boise, Idaho-based Micron jumped 7.59 percent to $6.66, and SanDisk surged 8.25 percent to $43.95. Late on Wednesday, OCZ Technology Group Inc (OCZ.O) said it expected revenue for the second quarter to fall below its previous forecast because of a shortage of the NAND chips it uses to build storage devices. Wall Street saw the outlook as new evidence that lower output by NAND manufacturers is reducing supply and helping stabilize low prices. "Supply and demand is coming into balance with the cuts and the industry rationalizing its capacity," said Kevin Cassidy, an analyst at Stifel Nicolaus. Reacting to surging sales of Apple's (AAPL.O) iPads, iPhones and other devices, chipmakers ramped up their NAND production capacity, but a supply glut drove prices to new lows this year. Japan's Toshiba Corp (6502.T) announced in July that it would slash production of NAND memory chips by 30 percent, a move expected to bolster prices across the industry. Low prices and steadily rising investment costs to implement new technologies have been driving consolidation in the highly competitive and cyclical memory chip industry. (Editing by Leslie Adler) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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