logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Can Micron Technology Continue to Outperform?

By  +Follow September 10, 2013 6:14AM
Share:
Tickers Mentioned:

To kick off the last trimester of the year, last week Equities.com took a look at 2013’s best and worst performing stocks on the Standard & Poor’s 500 index.

Among the less familiar names on the list of year-to-date winners is the Boise, Idaho-based producer of memory chips, Micron Technology (MU) . The company is listed in the technology sector as part of the semiconductor-memory chip industry, and without a doubt the stock has had a big year.

Monday saw the company’s shares close on a gain of 2.33 percent at $15.61 apiece. If that price seems diminutive, however, one need only consider the stock’s 150 percent advance from a starting point below $7 in the early days of January.

All six companies listed in the semiconductor/memory-chip industry hold average analyst ratings of “buy or better”. But with a market cap just shy of $16 billion, Micron is the largest in the pack with sixteen times the share of the market than its nearest competitor, the $1 billion Rambus Inc. (RMBS) . Spansion Inc. (CODE) is the third-largest at $640 million, followed by Integrated Silicon Solution Inc. (ISSI) , about half the size at $318 million. The list is rounded out by Netlist Inc. (NLST) and SemiLEDs Corporation (LEDS) , $27 million and $25.5 million respectively.

With the exception of Spansion, a company that has seen its stock lose about one fifth of its list price this year, the memory chip industry has had been on a robust upward trajectory. The S&P North American Technology Semiconductors Index has outperformed the S&P 500’s 17 percent advance in 2013 with its own 23.4 percent jump. More specifically, the six companies in the memory-chip subset of the semiconductors industry are up on average some 44 percent on the year.

Certainly, Micron is benefitting from more favorable business conditions; the memory chip market has benefitted greatly from the tech sector's shift towards mobile and cloud computing. This is in part due to the growing demand for NAND (Negated AND or NOT AND) products. One of Micron's rivals, Applied Materials (AMAT) , estimates that the market for NAND products will have expanded 50 percent by the end of 2013. Meanwhile, the research website iSuppli estimates that shipments of NAND conductors for tablets alone to rise to over 12 billion gigabytes this year.

During the recently ended third quarter, during which the company saw a sequential 12 percent increase in net income to $43 million, NAND shipments constituted some 60 percent of the company's trade NAND capacity, and Micron believes this trend will continue for the near future.

Micron has also positioned itself to take advantage of the increasing demand for DRAM memory chips, and especially mobile DRAM memory chips. It's acquisition of the company Elpida this past July has made it the second-largest actor in the expanding mobile DRAM market. As PC-use falls by the wayside, smartphone and tablet products are set to take up about 28 percent of the overall DRAM market this year, doubling up on 2012's 14 percent of the market. Prior to the Elpida purchase, Micron was generating less than 10 percent of its revenue from mobile DRAM.

The only possible problem for Micron, looking forward, is probably competition. The company is a rare publicly traded semiconductor "pure play", meaning that its business focuses entirely on memory semiconductors. And while the growth for demand of NAND and DRAM technology is set to increase over the next year, there are plenty of other players with skin in the game. Companies like Samsung (SSNF) , Toshiba (TOSBF) , and SanDisk (SNDK) all make their own memory chips, which is especially significant given that Samsung currently makes the world's most popular smartphone. Still, most of these larger companies make chips for their own products, and wouldn't theoretically be in the way of Micron's promising future.

 

[Image Courtesy Of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Signup for our daily newsletter and get our best articles emailed right to you!

Results for mu
Corporate Prophet
30 Mar 15 19:01:24
RT @i_Know_First: Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/ZvuitCmCq8 $aapl $gild $mu
Stock Rocket
30 Mar 15 19:00:21
Platinum Members Saw Penny Stock Picks Gain Over 1400% In 4 Months! Go Platinum: http://t.co/PsSamxBW6M $MU $XLNX $CHRW
BostonBound
30 Mar 15 19:00:08
$MU Will %R showing +ve divergence with RSI
StockenheimerSchmidt
30 Mar 15 18:39:49
$PPCH Gained As Much As 1005% Within 3 Days! Market News: http://t.co/oGWehWIJji $MU $XLNX $CHRW
Stock Dawgzz
30 Mar 15 18:37:48
Our Penny Stock Picks On $THCZ & $RCGP Gained A Combined 700% so far! Blog Update: http://t.co/g3eVEaITz6 $MU $YHOO $CGIX
JRS
30 Mar 15 18:36:19
Some good earnings next few days. Im watching $MU $GBX & $CALM http://t.co/mmKejzc5tV
royfberger
30 Mar 15 18:10:08
Morning watchlist: $TWC $AIG $ACT $MU $WFC $HTZ $LNG $CHTR http://t.co/SlU6nhsiH3 http://t.co/qNnc8G2XN2
TalkMarkets Recap
30 Mar 15 18:09:01
Looking Ahead Of Wall Street: RXi Pharmaceuticals, Titan Pharmaceuticals, Micron Technologies $RXII $TTNP $MU http://t.co/OzPsOGXtgS
$AAPL
30 Mar 15 18:02:48
RT NewsAAPL: Warren #Buffett Vs. David #Einhorn: Who Is Better At Picking Stocks? $BRK.B $SPY $MU $WFC $KO $AXP $A… http://t.co/gOyJTWVTjR
James DiPlata
30 Mar 15 17:56:25
RT @NewsAAPL: Warren #Buffett Vs. David #Einhorn: Who Is Better At Picking Stocks? $BRK.B $SPY $MU $WFC $KO $AXP $AAPL … … http://t.co/gOy…
Langan Stocks
30 Mar 15 17:55:08
$LUV Investor Opinions Updated Monday, March 30, 2015 8:02:37 PM $MU $XIV $AXP $MGON http://t.co/PdnUeSDnC3
$AAPL
30 Mar 15 17:44:56
$AAPL So I guess Apple need chips? $IBM $INTC $ALTR $AMD $MCHP $MU http://t.co/gOyJTWVTjR
Joshua Sanchez
30 Mar 15 17:31:20
$AAPL So I guess Apple need chips? $IBM $INTC $ALTR $AMD $MCHP $MU
Adam
30 Mar 15 17:30:14
RT @JeaYu21: $TWTR $HZNP $MU Trades Blog + $28 profits, choppy end of Q nutty moves today http://t.co/h2J6tlnIlg
$AAPL
30 Mar 15 17:28:40
Warren #Buffett Vs. David #Einhorn: Who Is Better At Picking Stocks? $BRK.B $SPY $MU $WFC $KO $AXP $AAPL … … http://t.co/gOyJTWVTjR
Lusitanian Traders
30 Mar 15 17:15:50
MU - Pivots (support and resistance - intraday) $MU http://t.co/0dG8vwjrvu
$AAPL
30 Mar 15 17:13:37
Warren #Buffett Vs. David #Einhorn: Who Is Better At Picking Stocks? $BRK.B $SPY $MU $WFC $KO $AXP $AAPL … http://t.co/gOyJTWVTjR
TalkMarkets Recap
30 Mar 15 17:09:02
Warren #Buffett Vs. David #Einhorn: Who Is Better At Picking Stocks? $BRK.B $SPY $MU $WFC $KO $AXP $AAPL http://t.co/z3AtwkzbwT
PolgarStocks
30 Mar 15 17:02:12
$SHY Stock Message Board Updated Monday, March 30, 2015 7:05:51 PM $QLD $F $MU $UNG http://t.co/DPRj7gydpu
PolgarStocks
30 Mar 15 17:02:11
$MU Recent News Updated Monday, March 30, 2015 7:05:51 PM $PVSP $NFLX $NUGT $BAC http://t.co/SAjLWPHOlM
suriNotes
30 Mar 15 16:35:08
$MU in Head and Shoulders pattern http://t.co/RPrpvvbVtO
suriNotes
30 Mar 15 16:33:31
Commented on: "Micron: Q2 And The Road Ahead" http://t.co/TqmtF2M6aW $MU
IH News Desk
30 Mar 15 15:55:43
$MU Percent Change Updated Monday, March 30, 2015 6:31:41 PM $XLU $QLD $ERX $BIDU http://t.co/SsDksDVdTL
FinSentS NASDAQ
30 Mar 15 15:44:29
$MU:US Two Very Different Analyst Views Ahead of MicronEarnings #MICRON TECHNOLOGY INC http://t.co/i54Ihcu6Wb #NASDAQ
Brady
30 Mar 15 15:43:21
Dont normally play earnings but considering $MU long
GuruFocus
30 Mar 15 15:01:24
Looking ahead of Wall Street: 3 companies set to report quarterly earnings in the next week http://t.co/MetACqYiBt $MU
Stock_Tracker
30 Mar 15 14:57:53
Micron Technology (MU) 26.68 $MU Micron: Q2 And The Road Ahead William Tidwell - at Seeking Alpha - 1 hr 31 mi http://t.co/kcBx0M9nlx
chartguy89
30 Mar 15 14:53:51
MU +0.02% Stock Charts $MU Micron Technology Inc. (NASDAQ) Last Updated: 03/30/2015 16:53:54 MU Stock Chart - http://t.co/v2NpBDLrrH
$AAPL
30 Mar 15 14:50:16
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/usmV5uqo5G $aapl $gild $mu http://t.co/gOyJTWVTjR
$AAPL
30 Mar 15 14:50:16
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/VzyFVarpyW $aapl $gild $mu http://t.co/gOyJTWVTjR
$AAPL
30 Mar 15 14:50:16
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/IXuw3iANNG $aapl $gild $mu http://t.co/gOyJTWVTjR
$AAPL
30 Mar 15 14:50:15
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/QgpUvEHSub $aapl $gild $mu http://t.co/gOyJTWVTjR
$AAPL
30 Mar 15 14:50:15
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/bzPnYCLF1b $aapl $gild $mu http://t.co/gOyJTWVTjR
Marketmaker27
30 Mar 15 14:44:15
$MU moving up the earnings date. $INTC acquisition rumors. Something big is around the corner.
IKnowFirst Research
30 Mar 15 14:36:06
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/w1HFAl7EjO $aapl $gild $mu
Apple Stock News
30 Mar 15 14:36:06
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/zfwh703NPv $aapl $gild $mu
I Know First UK
30 Mar 15 14:36:06
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/emDpLzi0l5 $aapl $gild $mu
I Know First
30 Mar 15 14:36:06
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/AL11WKf8wq $aapl $gild $mu
I Know First
30 Mar 15 14:36:06
Top 20 stocks to buy In April Based on Machine Learning Algorithms http://t.co/ZvuitCmCq8 $aapl $gild $mu
MicronTech
30 Mar 15 14:33:47
Our 2nd quarter earnings release that was previously scheduled for April 2nd will now happen on April 1st at 2:30 PM MDT. Don't miss it! $MU
leahanne
30 Mar 15 14:31:15
Volume Alert - MU 26.68 Micron Technology $MU Hit a high today of 26.96 Closing the day 03/30/15 at 26.68 +0.0 http://t.co/m9dXYMLcWh
leahanne
30 Mar 15 14:30:53
$MU Volume Alert - MU Stock 26.68 Micron Technology $MU Hit a high today of 26.96 Closing the day 03/30/15 at 26.6 http://t.co/UG0O4uNqsx
Russell Barbour
30 Mar 15 14:29:27
Fous4x2 #daytrading DVD review: http://t.co/EdBMlAdqQb $UAL $NFLX $FDX $LUK $MU $MAS $BEAV $GCAP $NVAX $NUG
$AAPL
30 Mar 15 14:19:39
Video: Week Ahead Market Report: March 30, 2015 $AAPL $BAC $INTC $AYI $CONN $MU #stocks http://t.co/0l68f1rGCZ http://t.co/gOyJTWVTjR
BNK Invest
30 Mar 15 14:12:36
Video: Week Ahead Market Report: March 30, 2015 $AAPL $BAC $INTC $AYI $CONN $MU #stocks http://t.co/xxIzTjl7Cz
StockNewsWires
30 Mar 15 14:02:01
$MU: Micron, Intel Expand Alliance to Deploy 3D NAND Technology: http://t.co/2sTfWJ5e5G
Large Void Bot
30 Mar 15 14:00:24
Popular: $GG, $MU, $CONE, $AXTA, $RPTP, $MEG, $FMSA, $CLD, $EPD, $PVTB, $HCG.CA, $AXS, $ARMK
BreakingStocksNews
30 Mar 15 13:50:06
$MU: Micron Technology, Inc. to Issue Second Quarter Fiscal 2015 ...: http://t.co/9GySmPzoGi
Dan
30 Mar 15 13:47:49
$MU OI for maturity 04/02/2015. 27.50 Highest put. 28.50 Highest call. http://t.co/DRnBuf5kY2
l9traders
30 Mar 15 13:35:35
$MU Credit Suisse, "We expect F2Q/F3Q to MISS, exacerbated by seasonal weakness in general, PC weakness specifically..."
				
				
By  +Follow September 10, 2013 6:14AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.