All data are based on the daily closing price as of November 11, 2024

ADATA Optimistic Amid Rising Memory Device Prices, Stock Surges

Benefiting from NAND Flash and DRAM price hikes, ADATA's revenue grows, with forecasts indicating further increases in the upcoming quarters
Taiwan
a 3260.TWO Mid and Small Cap 2000 Tech 350
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ADATA Technology, a leading player in the memory and storage market, has seen a significant upswing in its market outlook, propelled by the rising prices of key memory devices – NAND Flash and DRAM. This positive trend is reflected in the company’s stock performance, which experienced a notable surge in early trading, buoyed by three consecutive days of purchases by foreign investors. As of 9:05 AM, ADATA’s stock price had risen by 2.37%, reaching a value of 108 yuan.

This financial uptick comes after a period of sharp declines and losses in the memory market. However, with the recovery of terminal demand and major manufacturers scaling back production, NAND chip prices have begun to stabilize and rebound. This turnaround has enabled manufacturers to not only hike product prices but also benefit from low-priced inventory stocks, now appreciating in value.

In a recent statement, ADATA’s chairman, Li-Pai Chen, expressed optimism about the current market dynamics. He noted that upstream manufacturers are persisting with production cutbacks and are firm in their stance on price increases. The fourth quarter saw NAND Flash price increases exceeding expectations, with significant room for further hikes in the first quarter of next year. Additionally, Chen anticipates a potential shortage and price rise of DDR4 in the first half of the next year.

ADATA’s financial performance underscores this optimism, with the company reporting an 8% month-on-month and a substantial 56.21% year-on-year increase in revenue for November. This growth trajectory, coupled with favorable market conditions, places ADATA in a strong position to capitalize on the evolving dynamics of the memory and storage market. The company’s strategy of leveraging low-price inventory amidst rising chip quotations appears to be paying dividends, positioning it advantageously for the foreseeable future.

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