Micron Technology Inc.
) hit a new 52-week high of $19.88 on Nov 18, eventually closing
at $19.29. The closing share price represents a remarkable
one-year return of 248.2% and a 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 recently announced its decision to adapt its Hybrid
Memory Cube (HMC) for supercomputer systems. This is aimed at
further innovation in memory technologies. HMC will help to
simplify complexities and deliver greater reliability for
supercomputers and lower technology costs for Micron
Additionally, the company has also developed a new computing
architecture, Automata Processor (AP), which enables high-speed
execution and reduces the complexities of unstructured data.
The other positive factor for Micron is the Elpida
acquisition, which is expected to increase 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.
Moreover, Micron reported revenues of $2.84 billion for the
fourth-quarter of fiscal 2013, up 44.8% on a year-over-year
basis. Micron reported a 50% sequential increase in its revenues
from its DRAM products, with both volumes (up 42%) and average
selling prices (ASPs) (up 5%) contributing.
However, it may not be easy for Micron to capture share from
) a key player in the NAND zone. Nevertheless, with support from
), its prime NAND customers, the situation could turn in Micron's
favor going forward.
Currently, Micron carries a Zacks Rank #3 (Hold).
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