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Micron (MU) Updates QLC-Based SSD With New Capabilities

Zacks Equity Research

Micron Technology, Inc. MU recently added new features and capabilities to the 5210 ION enterprise SATA SSD, including the VMware vSAN certification, new 960GB SKU and QLC custom firmware to eliminate QLC endurance concerns and workload limitations.

With the new features, Micron will not only enable QLC SSDs to securely replace HDDs in servers and storage, but will also provide end customers with numerous supply-chain options. Notably, Micron’s 5210 QLC SSDs were made available on Lenovo’s ThinkSystem solution portfolio.

The QLC (quad-level cell) NAND technology-based SSDs deliver 175 times faster random reads, 30 times faster random writes, better sequential throughput and improved energy efficiency. The new enhancements bolster Micron’s leading position in the mass production of QLC technology.

Ever since the Micron 5210 SSD was launched in 2018, its widespread adoption among OEMs has reflected the growing traction of QLC technology in the data center, replacing HDDs.

Workloads are ever-evolving to meet the growing demand for real-time data insights and analytics. This is putting more pressure on data centers to deliver steady-state speed, capacity, efficiency and reliability. However, HDDs cannot provide these.

The Micron 5210 ION SSD is capable of delivering a compelling performance for enterprise storage compared with HDDs.

Micron Technology, Inc. Price and Consensus

Micron Technology, Inc. Price and Consensus

Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote

Micron Benefits From Improving SSD Demand

Micron has been witnessing higher memory-chip demand from PC manufacturers and data-center operators. Notably, the coronavirus-led global lockdown is spurring demand for PCs and notebooks as more and more workers and students are working and learning from home.

The work-and-learn-from-home necessity is also driving demand for cloud storage. Notably, this helped the company stand resilient to the coronavirus impact on global economic and business activities.

Notably, in the last reported quarter, the company’s revenues from the Storage Business Unit (SBU), considering only the SSD NAND components, increased 9% sequentially.

Micron is expanding its footing in the SSD storage market. The emergence of thinner laptops and tablets over the past few years has created ideal market conditions for SSDs, which are now entering the higher end of the market. Furthermore, secular growth of digital data, modest growth in TAM and higher demand for storage will drive growth in general and especially for SSDs.

Per MarketInsightsReports, the SSD market is expected to witness a CAGR of 4.9% between 2020 and 2025 to reach $21.51 billion. The SSD segment’s growth potential is a major positive for Micron.

Zacks Rank and Key Picks

Micron currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are LogMein, Inc. LOGM, ManTech International Corporation MANT and Orange ORAN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for LogMein, ManTech and Orange is currently pegged at 5%, 7.36% and 6.72%, respectively.

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