WATCH OUT FOR RAM PRICES!

AK6DN said:

Micron surges nearly 38% on week as memory chip rally goes parabolic

Micron Technology shares caught fire this week amid a global shortage of memory chips. The stock is heading for its best week since 2008.

www.cnbc.com

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More cartel news.

They do this because they can get away with it.

But like most everything too good to be true, I think it will eventually go bust. Nothing lasts forever.

cheaterslick said:

More cartel news.

They do this because they can get away with it.

But like most everything too good to be true, I think it will eventually go bust. Nothing lasts forever.S

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Stock prices are not determined by a company. Stock prices are determined only by what stock traders are willing to pay. It's really as simple as that. There are no cartels involved.

cheaterslick said:

More cartel news.

They do this because they can get away with it.

But like most everything too good to be true, I think it will eventually go bust. Nothing lasts forever.

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True enough. That said by the time the great levelling occurs RAM will likely still cost three or more times it cost less than two years ago. Prices go down but they rarely go down so much as they go up. Yup. The candy man's gone. Ain't progress grande?

TraderGary said:

Stock prices are not determined by a company. Stock prices are determined only by what stock traders are willing to pay. It's really as simple as that. There are no cartels involved.

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Sure there is. If they're artificially keeping prices high in collusion with one another, then it's a cartel. It's too much of a coincidence they all jack up their prices at the same time.

I know some out there who don't like the label because it makes them sound dirty. Well it is, they are dirty.

Greedy, corrupt and dirty. It's as simple as that.

I hope the EU investigates. They're about the only ones out there who can.

cheaterslick said:

Sure there is. If they're artificially keeping prices high in collusion with one another, then it's a cartel. It's too much of a coincidence they all jack up their prices at the same time.

I know some out there who don't like the label because it makes them sound dirty, well it is, they are dirty.

Greedy, corrupt and dirty. It's as simple as that.

I hope the EU investigates. They're about the only ones out there who can.

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If you're talking about the price of RAM, it's controlled by supply and demand, Prices are high right now because there's more demand than supply. That's the way capitalism works.

If you're talking about how the stock market works, stock prices are controlled entirely by the value stock market traders put on a stock. Trading stocks is how I've made my living for over 25 years. I know how the stock market works.

TraderGary said:

If you're talking about the price of RAM, it's controlled by supply and demand, Prices are high right now because there's more demand than supply. That's the way capitalism works.

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That's how it's supposed to work. In this particular case, it's a EPIC FAIL brought on by out-of-control AI artificially boosting the price.

Let some cartel folks make a killing, folks!

cheaterslick said:

That's how it's supposed to work. In this particular case, it's a EPIC FAIL brought on by out-of-control AI artificially boosting the price.

Let some cartel folks make a killing, folks!

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C'mon, think about it. There are hundreds of businesses selling RAM. People are going to buy the lowest price they can find. A business is not going to sell RAM for less than they can buy it wholesale. Businesses have to be competitive, but they also have to make a profit.

Hundreds of businesses don't collude with one another. Yes, AI use has resulted in a high need for RAM and the lack of supply results in high prices. Again, supply and demand controls prices. It's capitalism at work. And yes, it actually is working the way it's supposed to work.

TraderGary said:

C'mon, think about it. There are hundreds of businesses selling RAM. People are going to buy the lowest price they can find. A business is not going to sell RAM for less than they can buy it wholesale. Businesses have to be competitive, but they also have to make a profit.

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I wasn't talking about retail. I was talking about the manufacturers.

TraderGary said:

Hundreds of businesses don't collude with one another. Yes, AI use has resulted in a high need for RAM and the lack of supply results in high prices. Again, supply and demand controls prices. It's capitalism at work. And yes, it actually is working the way it's supposed to work.

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Again, I was referring to the manufacturers like Samsung, Micron, WD, SanDisk, etc...

cheaterslick said:

I wasn't talking about retail. I was talking about the manufacturers.



Again, I was referring to the manufacturers like Samsung, Micron, WD, SanDisk, etc...

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Don't manufacturers have to be competitive too?

TraderGary said:

If you're talking about the price of RAM, it's controlled by supply and demand, Prices are high right now because there's more demand than supply. That's the way capitalism works.

If you're talking about how the stock market works, stock prices are controlled entirely by the value stock market traders put on a stock. Trading stocks is how I've made my living for over 25 years. I know how the stock market works.

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Stock pricing also follows the supply and demand concept. The supply is (usually) fixed (but more shares can sometimes be issued) and the price per share is based on its demand in the market by traders. No demand, price falls. High demand, price rises.

TraderGary said:

Don't manufacturers have to be competitive too?

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These guys used to be, but not anymore. They've been taken over by a new breed of robber barons. They're now the Cartel of Silicon, and that's nothing to be proud of.

I swear that some people see a conspiracy in everything that happens!

There are only two major RAM manufacturers now since Micron went AI only, and the two remaining ones (Samsung and SK Hynix) have made record profits since the rise in prices. I read that Samsung made more money in the first quarter of this year than they made all of last year. Looks like there's more than just supply and demand at play here.

HTA said:

There are only two major RAM manufacturers now since Micron went AI only, and the two remaining ones (Samsung and SK Hynix) have made record profits since the rise in prices. I read that Samsung made more money in the first quarter of this year than they made all of last year. Looks like there's more than just supply and demand at play here.

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Nah, nothing nefarious. Pure economic supply and demand. When all the AI datacenter builders announce plans to spend hundreds of billions or even into the trillions of US$ on capital expenditures, and a large portion of that is in AI chips and supporting RAM technology, they have locked up the market supply for the next several years. Adding more DRAM fabs is not an easy or possible in the short term. These fabs are hugely expensive and take time to come online.

Of course the AI buildout could turn into a complete bust next year and the market could be flooded with no longer needed memory.
\Who knows. My crystal ball needs a significant RAM upgrade right now to work correctly, and I just cant buy an upgrade right now. Backordered. LOL

TraderGary said:

Hundreds of businesses don't collude with one another. Yes, AI use has resulted in a high need for RAM and the lack of supply results in high prices. Again, supply and demand
controls prices.

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Wrong. Hundreds of businesses do indeed collude with one another. This is called a consortium and it officially is called a consortium when the TCG is referred to. In fact, I remember when They referred to themselves unabashedly by the same description but it seems that this little gem of a reference has been removed from most web postings. No, I'm not losing it. They are still being described this way because that is indeed what they are. They are BIG PLAYERS, Gary. As a trader you should be aware of this. The audacity of this statement: Hundreds of businesses don't collude... Surely you are joking.

TraderGary said:

It's capitalism at work. And yes, it actually is working the way it's supposed to work.

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No. It's capitalism gone wrong. It's proving to young people and others that the system has a major flaw. This capitalism morphing into fascism, where the banksters and corporations control the government while their sock puppet politicians do their bidding. This is how the middle class go into extinction and become the serfs of feudalism. There's no accountability when monopolies call the shots and free enterprise dies. This is the reason countries like China exist in the first place. This is what turned Germany into monster before the second world war broke out. This not a good thing.

cheaterslick said:

I wasn't talking about retail. I was talking about the manufacturers.

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It isn't simply the manufacturers, my friend, although they certainly play a role. The mechanics are most certainly about supply and demand. As you know the demand is is artificially increased when the supply is controlled through corporate monopolies which buy up the supply to the extent that even the retailers can barely afford to purchase the commodity. But the real elephant in the room is the demand itself. How was it generated? It isn't as though the manufacturers suddenly decided to start charging double without any incentive to do so. Nope. The reality is that they, the manufacturers, can't keep up to the demand that was generated by their biggest customers. Take a wild guess at who that might be. A: The Consortium.

There's never a lack of conspiracy theories and those willing to believe them.

The Price of Ram and SSD drives have gone up due to the lack of supply.

gunrunnerjohn said:

I swear that some people see a conspiracy in everything that happens!

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Of course. Price gouging is all a part of our imagination. /s

lol...

HTA said:

There are only two major RAM manufacturers now since Micron went AI only, and the two remaining ones (Samsung and SK Hynix) have made record profits since the rise in prices.

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Naww, that never happened. That's 'fake news'. /s

HTA said:

I read that Samsung made more money in the first quarter of this year than they made all of last year. Looks like there's more than just supply and demand at play here.

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Gee, we better hang on to our tin-foil hats because we are only imagining that, too. /s

Scannerman said:

It isn't simply the manufacturers, my friend, although they certainly play a role. The mechanics are most certainly about supply and demand. As you know the demand is is artificially increased when the supply is controlled through corporate monopolies which buy up the supply to the extent that even the retailers can barely afford to purchase the commodity. But the real elephant in the room is the demand itself. How was it generated? It isn't as though the manufacturers suddenly decided to start charging double without any incentive to do so. Nope. The reality is that they, the manufacturers, can't keep up to the demand that was generated by their biggest customers. Take a wild guess at who that might be. A: The Consortium.

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Along with the Cartel of Silicon, I have no problem also dumping in big tech pushing AI like MS, Apple, Amazon, etc... with the all the 'imaginary' price gouging that's going on. Along with the dozens of AI startups that people have never even heard of before that are being pushed to control our lives in some way.

Notice the only argument naysayers really make is everybody who opposes it is wearing a tin-foil hat. The usual blow-off. These naysayers are people who are either really ignorant of the facts surrounding themselves, or they are aware of it but just don’t care because they may have had a stake in the way things are and that price gouging somehow enriches and fills their pockets in some way.

But at least some of us know better, right?

Scannerman said:

No. It's capitalism gone wrong. It's proving to young people and others that the system has a major flaw. This capitalism morphing into fascism, where the banksters and corporations control the government while their sock puppet politicians do their bidding. This is how the middle class go into extinction and become the serfs of feudalism. There's no accountability when monopolies call the shots and free enterprise dies. This is the reason countries like China exist in the first place. This is what turned Germany into monster before the second world war broke out. This not a good thing.

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Yeah, I've been noticing that too.

But that's also supposed to be a figment of our imaginations, right? /s

cheaterslick said:

Of course. Price gouging is all a part of our imagination. /s

lol...

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News Flash! Market forces aren't price gouging. I'm not saying there's no price gouging going on, but the major force here is the huge demand for memory. When that happens suddenly, it's not something that can be accommodated instantly by the fairly fixed production capacity of the memory manufacturers. This pattern has repeated itself a number of times over the years for all sorts of commodity electronics, it shouldn't come as a major surprise to anyone that's been in the industry for a long time. I'm sure you're also sure that the high gasoline prices are also price gouging and have nothing to do with a shortage of available product.