Overnight DRAM Prices (Since Dec. 1, 2000)

Source: Fechtor, Detwiler & Co.

Overnight DRAM Prices (Since Dec. 1, 2000)

Source: Source: Fechtor, Detwiler & Co.

The pricing in DRAM continues to worsen, as prices tumbled overnight for both the 64Mb and 128Mb chips, according to

Fechtor Detwiler

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, an investment firm that tracks the DRAM market. Spot prices for 64Mb chips came in at $2.60, a dime lower than Tuesday. Prices for the 128Mb chip fell 15 cents to $5.50. Spot demand continues to be weak.

Says Brian Kritzer, managing director of research at Fechtor Detwiler: "There is a ton of DRAM inventory out there, and 2/3 of this stuff goes into the PC market; it's no secret that there is a slowdown in the PC market." Compounding that, there is a real lack of strength in PC buying, which is proving to be a double whammy. "One thing we always had was demand and this time it is not happening," he says. "So, until the PC market turns around, there could be some weakness for awhile. This is going to take some time."

In other words, investors should not be looking for excess DRAM supply to be soaked up any time soon, which means that prices should remain weak.

Since December 1, 2000, DRAM prices are off 17.5% for 64Mb and 18% for the 128Mb chip. (Spot prices are prices at which memory chips are sold for immediate delivery.)