) hit a new 52-week high of $17.95 on Sep 27, eventually closing
at $17.62. The closing share price represents a staggering
one-year return of 205.37% and year-to-date return of
Micron's innovations in memory technologies, spanning DRAM,
NAND and NOR Flash memory solutions, are being widely used in the
latest mobile computing devices as well as in consumer,
networking and embedded products.
Micron has recently announced the shipping of 2GB Hybrid
Memory Cube (HMC) engineering samples, which provides 160 GB/s of
memory bandwidth and uses approximately 70% less energy per bit
than the current technologies. These features are expected to
help Micron's customers to lower technology costs.
Moreover, the company has unveiled its new replay-protected
monotonic counter (RPMC) feature for serial peripheral interface
(SPI) NOR Flash memory devices, which facilitates secure data
The other positive factor for Micron is the Elpida
acquisition, which is expected to increase the wafer
manufacturing capacity by approximately 50%, helping it to
capitalize on any demand shortage. The company is also optimistic
about supply/demand balance for DRAM and NAND memory chips in
2013 and 2014, which should support prices.
We believe tight expense control (Micron is expected to cut
approximately 5% of its 30k strong workforce by fiscal 2014),
manufacturing efficiency and the secular shift toward mobile DRAM
will benefit Micron's fundamentals in the coming quarters.
Though Micron's prospects in the mobile DRAM market look
promising, it will not be easy to outpace Samsung. Samsung has
held the largest share of this market for years and there are
indications that it will continue to do so in the next few years
The DRAM market is already seeing supply constraints due to
the rising demand for the memory chip by smartphone makers such
as Samsung and
It will also not be easy for Micron to capture share from
), a key player in the NAND zone. Nevertheless, with support from
its prime NAND customers - Apple and
) - the situation could become favorable for Micron, going
Currently, Micron has a Zacks Rank #1 (Strong Buy).
APPLE INC (AAPL): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
SANDISK CORP (SNDK): Free Stock Analysis
To read this article on Zacks.com click here.