Timed perfectly to maximize profits, Samsung (SSNLF) followed Micron’s (MU) price hikes in the personal computer market. Last month, memory prices for both the current DDR5 generation and the last-generation DDR4 prices more than doubled.
Chip suppliers allocated their production for GDDR graphics memory, which AI servers require. As a result, they cut DDR5 supply and raised prices. Shares of Samsung stock are up by 82% on South Korea’s stock market. Micron shares are up by 193.3% YTD and by 22% in the last month.
In the traditional markets, paper supplier International Paper (IP) announced that it would shut down two packaging plants. The plants in Compton, California, and Louisville, Kentucky, will close. Executive VP Tom Hamic cited the need to cut costs and consolidate operations. Demand for paper packaging is weakening.
Investors should infer that the slump in IP stock reflects the damage caused by tariffs and the slowing economy. Although FedEx (FDX) stock rebounded, International Paper’s struggles are a warning sign. Bears hold a 10.24% short interest in the firm.
In economic news, the Bureau of Labor Statistics will post job data this week. The weak ADP and Challenger’s report suggest a weak non-farm payroll report.
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