Samsung’s labor issues are boosting Micron. On Monday, Micron’s shares rose 6% in early trading as investors anticipated that a possible Samsung walkout would worsen memory chip shortages, benefiting Micron and SK Hynix. Here’s what the Samsung strike threat could mean for chip stocks and whether Micron’s rally might last.
Samsung’s unions are demanding that 15% of operating profits be allocated to employee bonuses. If this week’s talks fail, a general walkout could occur from May 21 to June 7. Jefferies estimates the strike could disrupt about 3% of global memory chip output, a significant impact in an already tight market.
Micron’s stock is up 75% over the past month and is now valued at over $800 billion. SK Hynix shares rose 12% in Seoul on Monday. Samsung’s stock also gained 6.3%, as investors weighed both possible settlement and higher memory prices despite supply concerns.
Memory chip supplies were already tightening before the strike threat. On Monday, a J.P. Morgan analyst noted that the supply-demand gap will likely widen through 2027, with customers pre-ordering amid concerns about shortages. Prices and volumes should stay high through 2027 and 2028.
On Monday, D.A. Davidson reiterated its Buy rating and $1,000 price target for Micron. The firm said investors still underestimate AI-related memory demand, and memory companies should benefit from tight supply for some time
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