Shares of Micron Technology Inc. (MU) hit a new 52-week high of $19.88 on Nov 18, eventually closing at $19.29. The closing share price represents a remarkable one-year return of 248.2% and a year-to-date return of 190.9%.
Micron’s innovations in memory technologies, spanning DRAM, NAND and NOR Flash memory solutions, are being widely used in the latest mobile computing devices as well as in consumer, networking and embedded products.
Micron recently announced its decision to adapt its Hybrid Memory Cube (HMC) for supercomputer systems. This is aimed at further innovation in memory technologies. HMC will help to simplify complexities and deliver greater reliability for supercomputers and lower technology costs for Micron customers.
Additionally, the company has also developed a new computing architecture, Automata Processor (AP), which enables high-speed execution and reduces the complexities of unstructured data.
The other positive factor for Micron is the Elpida acquisition, which is expected to increase wafer manufacturing capacity by approximately 50%, helping it to capitalize on any demand shortage. The company is also optimistic about supply/demand balance for DRAM and NAND memory chips in 2013 and 2014, which should support prices.
Moreover, Micron reported revenues of $2.84 billion for the fourth-quarter of fiscal 2013, up 44.8% on a year-over-year basis. Micron reported a 50% sequential increase in its revenues from its DRAM products, with both volumes (up 42%) and average selling prices (ASPs) (up 5%) contributing.
However, it may not be easy for Micron to capture share from SanDisk Corp. (SNDK) a key player in the NAND zone. Nevertheless, with support from Apple Inc. (AAPL) and Intel Corp. (INTC), its prime NAND customers, the situation could turn in Micron’s favor going forward.
Currently, Micron carries a Zacks Rank #3 (Hold).