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Could the DRAM market be flipping to shortage from glut?

That possibility is powering big gains today by both the memory chip stocks and the semiconductor equipment companies that supply them with manufacturing gear. Triggering the rally this morning: bullish comments on DRAM from Frank Huang, the chairman of Taiwan-based Powerchip.

Teradyne (TER) late yesterday reduced its guidance for its fiscal first quarter ending April 5.

For the quarter, the semiconductor test equipment company now sees sales of $115 million to $120 million, and a non-GAAP loss of 40-42 cents a share. Teradyne also said it sees second quarter sales flat with Q1.

Teradyne’s previous guidance was for sales of $125 million to $145 million, and a non-GAAP loss of 31-38 cents a share.

Teradyne (TER) late yesterday added to the grim atmosphere in the semiconductor equipment business, posting disappointing Q4 results and grim Q1 guidance. The company, which makes semiconductor test equipment, also said it will cut its staff by 14% in Q1 and temporarily implement a 10% pay cut. Teradyne has about 3,600 employees.

For the fourth quarter, Teradyne posted revenue of $195 million and a non-GAAP loss of 19 cents a share; the Street had been expecting $201 million and a loss of 13 cents.