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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen1/27/2017 10:44:54 AM
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With supplies tight, memory chipmakers head into ultra-super-cycle



The global memory chip industry is heading into what's been dubbed an ultra-super-cycle, as the challenge of making chips smaller yet more efficient has created supply bottlenecks, while there is soaring demand for data storage - from smartphones and artificial intelligence to autonomous driving and the Internet of Things.

Chipmakers and analysts predict the price rally - the average price of benchmark memory chips rose 26-31 percent last year - will continue this year as supplies remain tight.

"We expect an ultra-super-cycle instead of just a super-cycle in the 2017 DRAM industry," said CW Chung, an analyst at Nomura, referring to memory chips used in smartphones and computers for short-term data processing and storage.

That's left gadget makers scurrying to secure stable supplies, and distributors reporting shipment delays, while chipmakers enjoy bumper earnings.

reuters.com

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