Dixon Technologies Stock Drops as Bearish Outlook Signals New Sector Challenge
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Dixon Tech Shares Fall as Morgan Stanley Warns of Headwinds from Soaring Memory Prices
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CNBC TV18•23-02-2026, 13:24
Dixon Tech Shares Fall as Morgan Stanley Warns of Headwinds from Soaring Memory Prices
•Dixon Technologies shares dropped over 3% after Morgan Stanley maintained an 'Underweight' rating with a target of ₹8,157, citing rising memory prices.
•DRAM spot prices surged 6.8x year-over-year by February 13, 2026, with mobile DRAM prices expected to climb 88-93% in Q1CY26.
•Morgan Stanley highlighted that 75% of India's smartphone market is below $300, making it highly vulnerable to component cost inflation.
•CLSA also downgraded Dixon Tech to 'Hold', warning that rising memory costs could increase smartphone ASPs by 10-25%, impacting lower-end consumers.
•India's reliance on imports exposes it to a global supply squeeze as manufacturers prioritize high-margin AI-grade memory.
