Overnight DRAM Pricing (64 Mb SDRAM) |
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| Source: Fechtor Detwiler & Co. |
Overnight DRAM Pricing (128 Mb SDRAM) |
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| Source: Fechtor Detwiler & Co. |
DRAM prices were stable overnight, according to
Fechtor Detwiler, an investment firm that provides pricing for the DRAM market to
TheStreet.com.
Prices for 128 megabit SDRAM were steady, coming in at $4.05; prices for 64 Mb SDRAM were steady, coming in at $2.05.
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| Why This Metric Matters | | DRAM (dynamic random access memory) is the most common kind of memory used in personal computers and workstations. Two-thirds of all DRAM goes into PCs, so DRAM prices are closely followed by investors in boxmakers like Dell (DELL Quote - Cramer on DELL - Stock Picks) and Compaq (CPQ Quote - Cramer on CPQ - Stock Picks). The metric is also tracked by investors in semiconductor companies like Micron (MU Quote - Cramer on MU - Stock Picks), which makes DRAM. DRAM prices are an indicator of demand for the PC market. Generally, when DRAM prices fall it's because PC makers are not demanding as much DRAM, and that's because they're not seeing as much demand for PCs. When the DRAM demand by PC makers rises, prices of DRAM rise -- as supplies are drawn down. On the flipside, if DRAM is in less demand, manufacturers like Micron suffer. During the late part of 1999 as the price of DRAM soared and PC demand was strong, the supply of DRAMs was tight and the price reflected that, reaching as high as $20 for the 64-Mb chip at the end of September 1999. However, as the technology industry started slowing in early 2000, DRAM prices quickly fell off. The two most common DRAMs are 64-megabit SDRAM and 128-megabit SDRAM. These are the small chips that are eventually clustered together and turned into modules that consumers typically find in their computers. The 64-Mb, currently the industry standard, is slowly giving way to the faster 128-Mb chips that is expected to be more widespread in 2001. | |
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| How Often Updated on TSC | | Daily, around 10:30 a.m. EST | |
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| Historical Info | | Prices for 64-Mb SDRAM reached a recent high of $20 on Sept. 27, 1999. A recent low of $1.95 was reached on Feb. 28, 2001. Prices for the 128-Mb SDRAM have only been followed for a short period of time, so historical information is scant. However, on Nov. 13, 2000, prices were at a high of $7.90. A low of $4.00 was recorded on Feb. 28, 2001. | | | |
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