Micron Technology (NASDAQ:MU) cut 35 basis points from the Fund's return, as its stock fell 6.6% from $41.33 to $38.59. Prices for Micron's dynamic random-access memory chips (DRAMs) continued to decline, indicating that the memory market is oversupplied. The trade war with China and export ban on Chinese technology company Huawei also pressured the stock, since Huawei is a big customer of Micron's. We believe the impact of the ban will be fleeting, as global supply chains have already begun to adjust. Long-term, demand from data centers and the Internet of Things (IoT) should drive sales of Micron's vital chips for years to come.
From Jerome Dodson (Trades, Portfolio)'s second-quarter 2019 Endeavor Fund shareholder letter.
This article first appeared on GuruFocus.
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