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Micron Technology (MU): upside ahead?

May 18, 2018


Micron Technology (NASDAQ: MU) is down almost 3% in today's trading. Is today a good buying opportunity? Let us look at the fundamentals. Micron is a significant supplier and manufacturer of memory and storage used electronic devices ranging from personal computers to smartphones. The firm had a market share of 20% of total memory/storage shipments. In 2017, DRAM accounted for roughly 64% of total revenue, with NAND making up the remainder. Micron operates in the highly competitive space, so its long-term profitability is limited. There is little or no product differentiation in memory storage, with average selling prices normally tracking downward over time. This ultimately leads to major price competition between the industry leader Samsung and second-tier companies such as Micron and Hynix. Smaller competitors tend to establish joint ventures in an attempt to come up with superior memory solutions. Through the partnership with Intel, Micron has developed next-generation 3D NAND as well as the upcoming 3D XPoint technology, which will allow the company to weather economic and cyclical downturns. Per Finstead research, out of 31 analysts covering the stock, 25 rate it a strong buy.

The Micron stock price target upside is 8.59% (type "MU upside" on Finstead).

Micron Technology (MU): upside ahead?  

Finstead Bites Read our insightful, bite-sized news about the stock market. Get your investment scoop quickly and efficiently.

Micron Technology (MU): upside ahead?  

Finstead Bites Read our insightful, bite-sized news about the stock market. Get your investment scoop quickly and efficiently.

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