This is a positive sign, as memory manufacturers have been facing losses or low earnings since 1996. It can be a key indicator for trends in the PC market.
Stable prices mean profits for manufacturers and investors in memory companies.
Substantial improvements in demand can then support demand for semiconductor equipment. On the other hand, the flood of cheap memory over the past two years has been a factor in the drastic cuts in PC prices. Stable or rising memory prices could slow the discounting curve. However, questions still linger about whether Micron's quarterly results were an anomaly in a continuing downward slide for the memory industry. Despite price stabilization, others say that prices for 64-megabit DRAM, which now constitutes the bulk of the market, started to decline again in March.