Parnassus Fund Comments on Micron Technology

Micron Technology ( NASDAQ:MU ) was our worst performer, as its stock fell -6.-% from $-4.-6 to $-….47 and reduced the return by --4 basis points. Micron makes semiconductor memory chips, and its stock fell after weaker-than-expected demand for personal computers caused memory chip prices-and Micron's earnings-to decline. This issue has been affecting the company for over a year now, and the stock has fallen dramatically from its peak of $'6.49 in December of -…-4. We don't know precisely when memory chip prices will stabilize, but we're confident they eventually will. Memory chips benefit from the long-term trends of increasing smartphone penetration in emerging markets; the proliferation of Internet-connected devices, such as watches, cars and industrial machines; and the rapid growth of data centers. Micron is now trading below its book value of $--.8…, and we took advantage of the deeply discounted price to add to our position.

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