Since November, several memory chip-related stocks have continued to gain momentum. After disclosing that memory chips produced by its subsidiary had been delivered in small batches, Xiechuang Data (300857.SZ) saw its share price surge from 27.6 yuan per share to 55.42 yuan per share within the month, a gain of 100.65%; Yawell Co., Ltd. (002559.SZ), which entered the memory chip testing business through the full acquisition of South Korea’s GSI, also saw its stock price soar by 59.63% during the month; Langke Technology (300042.SZ), the leading mobile storage company with a product line covering SSDs, DRAM modules, and embedded storage, saw its stock price rise by as much as 45.36% in November.
Behind the rebound in the stock prices of related companies is the fact that memory chip prices—which had been in a “steady decline”—began to rise sharply in the fourth quarter of this year. According to data from CFM Flash Market, a well-known industry consulting firm, the spot market price index for NAND Flash has risen by 40% since October. Reporters also learned from several memory chip distributors in South China that prices for solid-state drives (SSDs) from brands such as Samsung, Western Digital, and Kingston have all seen a significant rebound in recent months, with price increases generally ranging from 100 to 130 yuan.
Some market observers believe that this round of “recovery” in memory chip prices is a classic example of supply and demand mutually reinforcing each other within the industry. For chip manufacturers, after the industry suffered a severe setback in 2022—with memory giants such as Samsung Electronics and SK Hynix experiencing significant declines in performance or even losses—a consensus emerged among memory manufacturers to “raise prices” and “cut production.”
In addition to upstream companies steadfastly implementing inventory reduction strategies, the downstream consumer electronics market is also showing signs of recovery. According to IDC research data, from October 23 to November 3, 2023, overall PC market sales (including laptops and desktops sold through e-commerce platforms, manufacturers’ official websites, and traditional offline channels) rose by 1.4% year-over-year. Additionally, tablet market sales increased by 13.5% year-over-year, smartphone sales rose by 10.2% year-over-year, monitor sales increased by 5.3% year-over-year, smartwatch sales (excluding children’s watches) grew by 23.6% year-over-year, and fitness tracker sales rose by 15.2% year-over-year.
IDC noted that during this year’s “Double 11” shopping festival, demand for the three major consumer electronics devices—PCs, smartphones, and tablets—all saw stronger-than-expected growth, which was one of the main drivers of the overall smart device market.
Sun Mengwei, a CFM flash memory market analyst, told reporters that, considering both supply and demand in the storage industry, although prices for related products remain at the bottom of the range and it cannot be ruled out that some downstream distributors may slightly lower prices to stimulate sales and boost cash flow, none of this will alter the overall upward trend in the market.
