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Investing.com -- Memory chip stocks jumped in Monday’s premarket trading after a report that Samsung Electronics has delayed setting contract prices for DDR5 memory chips as spot prices tripled.
Micron Technology shares climbed 4.1%, while SanDisk gained over 6.1%, leading the rally among memory manufacturers.
Other storage companies also moved higher, with Western Digital adding 2.1% and Seagate Technology rising 2.8%.
According to a DIGITIMES report, Samsung halted its October pricing announcements for DDR5 memory chips, pushing them to mid-November as spot market prices surged.
The delay in contract pricing amid rapidly rising spot prices indicates tightening supply conditions in the memory chip market, a situation that typically boosts revenue and profit margins for storage companies like Micron, SanDisk, Western Digital , and Seagate.
