Shares of memory chipmakers surged in premarket trading Monday following reports that Samsung Electronics has postponed setting contract prices for its DDR5 memory chips after a sharp rise in spot market prices.
Micron Technology (NASDAQ:MU) climbed 4.1%, while SanDisk jumped over 6.1%, leading gains across the semiconductor sector. Other storage names followed suit, with Western Digital (NASDAQ:WDC) advancing 2.1% and Seagate Technology (NASDAQ:STX) up 2.8%.
According to a DIGITIMES report, Samsung suspended its scheduled October pricing updates for DDR5 chips and plans to release new prices in mid-November, as spot prices for the high-performance memory have nearly tripled in recent weeks.
Analysts said the delay in contract pricing suggests that supplies are tightening in the global memory market. Such conditions typically bolster profitability and pricing power for producers like Micron, SanDisk, Western Digital, and Seagate, which benefit from higher average selling prices as customers rush to secure inventory.