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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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From the Parnassus Fund first quarter -…-6 shareholder letter .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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