JPM has some positive things to say about DRAM, slightly negative on equipment makers.
Chatter of Samsung Spending Slowness Hits Lam -- Market Talk
Dow Jones Newswires 12:51 PM ET March 18, 2015
12:51 EDT- JPMorgan says Samsung "recently postponed a meaningful level of equipment orders/deliveries" by 1-2 quarters as the chip maker appears to be slowing capacity increases. While "somewhat negative in the near term for semi-equipment companies," it's "evidence of discipline in the DRAM supply chain." (END) Dow Jones Newswires March 18, 2015 12:51 ET..
EDIT: more from SA--
Micron ticks higher, chip equipment firms slump on Samsung DRAM report • 11:16 AM
Eric Jhonsa, SA News Editor
- JPMorgan reports Samsung is slowing down the pace of its DRAM capacity ramp. The firm reiterates an Overweight rating and $40 target on Micron ( MU +0.8%), whose shares have been hit more than once by Samsung spending fears.
- While Micron edges higher, chip equipment maker Lam Research ( LRCX -4.3%), which has considerable DRAM exposure, is selling off. Mattson ( MTSN -11.8%), Aixtron ( AIXG -1.9%), and Axcelis ( ACLS -1.1%), other equipment makers that have DRAM exposure, are also lower.
- Lam, a David Einhorn favorite, offered upbeat commentary about 2015 DRAM capex on its FQ2 CC ( transcript), and noted 30% industry bit growth is expected this year.
- Also: 1) Drexel Hamilton has made upbeat comments about DRAM demand after talking with an unnamed Asian memory maker; the firm expects mobile DRAM demand to restore a supply/demand balance later this year. 2) Jefferies (Buy) has cut its Micron target by $5 to $40, predicting Q1 DRAM pricing weakness will continue into Q2 due soft PC demand, before smartphone demand and "corrective actions on the supply side" lead prices to stabilize.
- Yesterday: Micron drops on RBC target cut
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