DRAM shortages are lifting prices and as a result market watcher iSuppli has upgraded its rating of near-term conditions for DRAM suppliers to positive.
DRAM sales revenues fell 19.5% in the first quarter compared to the previous quarter, but this was reversed in Q2 when rising DRAM prices pushed revenues up by 37.5%.
Revenue is set to continue to rise on a sequential basis by more than 20% each in the third and fourth quarters, according to iSuppli.
"The improvement in circumstances is a welcome relief to a DRAM market that has been stuck in a state of oversupply for nearly three years," said Nam Hyung Kim, chief analyst for iSuppli.
"The oversupply has been a disaster for the global DRAM industry, with revenue dropping to $23.6bn in 2008, down from $34bn in 2006," Kim said.
Kim added: "With rising demand and limited supply for DDR3, the global DRAM industry is set for a sustainable recovery that will extend into the fourth quarter and pave the way for a robust annual increase in 2010."
iSuppli had maintained its negative rating since September 2008 until it upgraded the condition to neutral two weeks ago.
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