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Last updated: November 27th, 2017 at 13:51 UTC+01:00
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According to the investment firm, NAND prices have started to reverse this quarter and the boom in demand for memory chips is set to peak soon, although another research firm believes the reaction to market trends was a “bit over-sensitive” in this case. According to Greg Roh, an analyst at HMC Investment & Securities, it was known already that “NAND prices are going down, which is actually needed to encourage sound demand and increase shipments. And Samsung is strong in NAND chips for data center SSDs (solid state drives) which will be less affected.”
Still, Morgan Stanley's view on Samsung's stock has gone from “overweight” to “equal weight”, and the firm has reduced the Korean giant's stock target price by 3.4 percent, resulting in a drop in shares to a one-month low. That's not to say Samsung's shares are going to be affected much, and it's possible the increase in demand for its OLED panels (now that Apple is using one on the iPhone) could counter the decline in stock price. Even with the 4.2 percent decline, Samsung's shares are at an all-time high this year, with a rise of more than 47 percent.
Today's drop also trails behind that which the company suffered after the Note 7 was recalled; Samsung's shares dropped by 7 percent at the time as the biggest one-day price decline in the company's history. Furthermore, shares of SK Hynix, the second largest manufacturer of memory chips, also fell by 3.6 percent following Morgan Stanley's report.
Abhijeet's writing career started with guides for custom firmware for Samsung devices (including the original Galaxy S), and he moved to SamMobile in mid-2013 and worked up the ranks to Editor-in-chief. In addition to phones and mobile devices, his interests include gaming on both PC and console, PC hardware, and spending countless hours on YouTube watching videos on tech, movies, games, politics, and internet dramas.
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