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Jerome Dodson Comments on Micron Technology

- By Holly LaFon

Micron Technology (NASDAQ:MU) added 160 basis points to the Fund's performance, as its stock climbed from $31.73 to $41.33 for a total return of 30.3%. The company makes dynamic random-access memory (DRAM) chips and other types of memory chips used in PCs, smartphones and data servers. Prices for DRAM continued to decline, yet the stock rose due to the company's aggressive efforts to reduce industry overcapacity. Management also said that cloud customer inventory would normalize by the end of the year, suggesting that investors have been too pessimistic about the cycle. We like Micron, as strong demand from datacenters and the Internet of Things (IoT) should increase sales of its memory chips for years to come.

From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund first-quarter 2019 shareholder commentary.
This article first appeared on GuruFocus.