DRAM sales show dramatic rise

It also suggests that the Dramurai will manage to increase their margins and oversupply is likely to be minimal.

Nor is Merrill Lynch too worried about oversupply, due to what it described as Micron's market contraction, the phasing out of eight inch fabs, and a frenzy of NAND building by the manufacturers.

It's gone cautious on NAND but is still bullish on DRAM. It thinks DRAM capacities won't be great enough to meet the demand Vista will generate. µ