RAM memory is an integral part of every computer because it determines how many windows and programs you can have running at once.

For the past 12 months, the RAM memory market saw prices drop 80%. As you can imagine, this hurt suppliers.

After a year of significantly reduced profits, it appears that RAM manufacturers will finally cut back on expansions and spending by more than 50%. This means less memory will be shipped in 2008.

According to market researcher iSuppli Corp, this should bring supply and demand back into balance and help push RAM prices higher throughout the year.

RAM manufacturers have already seen share prices move higher on this improved outlook. And as the RAM market improves, you can expect to see more increases.

The best way to play this trend is to buy shares of Micron (MU), one of the leading memory manufacturers in the world.

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