Micron Technology Inc.
) hit a new 52-week high of $21.19 on Nov 27, eventually closing
at $21.17. This continues the recent uptrend in the price of the
shares, which are now up around 21.0% over the past one month.
The closing share price also represents an extraordinary one-year
return of 258.2% and a year-to-date return of 219.3%.
Some of the current optimism surrounding the shares is related
to David Einhorn's hedge fund Greenlight Capital, which recently
acquired a large number of Micron's shares, taking its total
holdings to 23.02 million shares. The share purchase was
primarily due to Micron's innovations in memory technologies,
spanning DRAM, NAND and NOR Flash memory solutions. These 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 increased wafer manufacturing capacity by
approximately 50%, helping it to capitalize on any demand
shortage. The acquisition also brought Apple onto the customer
roster, which will be a positive for growth at Micron.
The company is also optimistic about supply/demand balance for
DRAM and NAND memory chips in 2013 and 2014, which should support
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).
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.