|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||43.88 - 45.86|
|52 Week Range||34.09 - 64.66|
|PE Ratio (TTM)||4.55|
|Earnings Date||Sep 20, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||78.45|
Micron Technology Inc. will give investors a much better lay of the land of the memory chip market this week following a quarter of dueling narratives on whether chip prices would hold premium prices.
US markets have been quite resilient for the most part in 2018—even in the face of escalating trade tensions between the United States and the European Union, Canada, Mexico, and China. The markets have tended to dive initially only to erase most of the losses later on—probably because the markets believe that the United States has the upper hand in the trade situation and has less to lose. In contrast, China’s major indexes have plunged ~25.0% from their highs this year, and its economic growth is also feeling the pressure from these escalating trade tensions.
Micron Technology (MU) supplies DRAM (dynamic random-access memory) and NAND (negative-AND) chips to major markets, including mobile. Micron stock has been falling since the start of September due to analyst downgrades. However, the stock rebounded on September 13, a day after Apple (AAPL) announced its iPhone Xs, XR, and X Max.
Likewise, Appaloosa Management’s David Tepper isn’t necessarily wrong to continue plowing into an ever-bigger stake in Micron stock. The world’s computers, servers and mobile devices need more and more memory, and Micron is the creme of the crop of the DRAM market. Certainly there will come a time when Micron stock bounces back from what’s become more than a 30% setback from its late-May peak.
Micron Technology (MU) has braced itself to withstand the challenge of falling memory prices by improving its cost competitiveness and increasing its mix of high-value solutions from the supply side. Now let’s look at the demand side of memory.
Of the 31 analysts tracking Western Digital (WDC), 25 have recommended “buys,” and six have recommended “holds.” The stock doesn’t have any “sell” recommendations. Analysts’ 12-month average price target for WDC is $102.15, and their median estimate is $103. WDC is trading at a discount of ~80% to analysts’ median estimate. The low estimate for WDC stock is $55, and the high estimate is $145.
Cowen & Co. analyst Karl Ackerman lowered his price target on shares of Micron Technology Inc. to $62 from $72 overnight, though he kept his outperform rating intact. "Investor sentiment is dreadful going into the company's print Sept. 20 after market close, but we cannot dismiss incremental risk in H2 of this year as our field trip in Asia last week reveals a less benign supply/demand environment for DRAM," Ackerman wrote. "We expect Micron to guide below for the first time in 8 quarters, but this appears priced-in." Also on Tuesday, J.P. Morgan reiterated its bullish view on the stock. Shares are up 0.7% in premarket trading Tuesday, though they're down 25% over the past three months. The S&P 500 has gained 4.2% in that time.
In this series, we’ll look at the top technology stocks that fell on September 17 and compare them with analysts’ estimates. Cree (CREE), the maker of lighting-class LED (light-emitting diode) and semiconductor products, fell 5.2% on September 17. It seems that Cree has been impacted by the overall weakness in the semiconductor industry.
Shares of Micron Technology Inc. rose 0.5% in premarket trade Tuesday, after J.P. Morgan analyst Harlan Sur suggested recent growing bearish sentiment was unwarranted, saying in a note to clients that he continues to see "significant upside" in the memory chip maker. He reiterated his overweight rating and $84 stock price target, which is 93% above Monday's closing price of $43.58. Sur said recent sentiment was based on fears of peak pricing in the second half of 2018 and a downturn cycle in 2019, but he expects supply and demand fundamentals to remain in balance, as suppliers remain rational in adding bit supply and demand for memory remains "strong and broad based." He expects particularly strong datacenter demand, which is Micron's largest end market. "Moreover, we believe Micron is structurally better positioned to compete in memory markets moving forward with a much improved cost structure on better manufacturing execution (node transitions) versus prior cycles," Sur wrote. Micron is slated to report fiscal fourth-quarter results after Thursday's closing bell. The stock has tumbled 25.4% over the past three months, while the PHLX Semiconductor Index has slipped 3.6% and the S&P 500 has gained 4.2%.
DRAMeXchange expects DRAM (dynamic random-access memory) contract prices to fall 1%–3% in the fourth quarter and 15%–25% in 2019 as Samsung’s (SSNLF) and SK Hynix’s new DRAM capacities come online. DRAMeXchange expects NAND (negative-AND) prices to fall 10% in the third quarter. Micron Technology (MU) has been preparing for these challenging times by accelerating its transition to smaller, more cost-effective nodes and high-value memory solutions.
Micron Stock: To Buy or Not to Buy? Micron (MU) has a lower stock valuation since investors have been cautious about the stock due to its exposure to memory cyclicality. Micron plans to return $10 billion to its shareholders through a share buyback.
Shares of Micron (MU) slipped once again Monday on the back of two significant price cuts from BMO Capital Markets and Deutsche Bank (DB). Micron's recent decline is part of a roughly 25% downturn over the last three months. So, the question is what should investors do with Micron stock ahead of the firm's upcoming fiscal fourth-quarter earnings release?
Thanks to the mainstream emergence of multiple secular-growth technology trends, the global semiconductor market has been on fire recently. While financial media outlets love to talk about semi-darlings Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Micron (NASDAQ:MU), and other high-flyers, one semi-stock which is often left out of the discussion is Broadcom (NASDAQ:AVGO). Not only have Broadcom’s numbers boomed with the rest of the semiconductor industry over the past five years, but, during that stretch, AVGO stock has rallied more than 500%.
David Tepper (Trades, Portfolio) on Thursday expressed confidence in Micron Technologies (MU), the largest position in his portfolio, telling CNBC he was still "very, very long" its shares. Warning! GuruFocus has detected 1 Warning Sign with MU. Markets have moved in the past in response to statements from the founder of leading hedge fund Appaloosa Management, which has achieved annual returns exceeding 30% since its founding in 1993.
Micron Technology (MU) is the fourth-largest NAND (negative-AND) chip maker. It earns 25% of its revenue from NAND. In the NAND market, where demand is sensitive to price, chip makers compete on price.
Stock futures edged lower Monday morning. The U.S.-China trade war seems set to escalate this week after hopes for new talks lifted markets last week
Micron Technology (MU) is the third-largest DRAM (dynamic random-access memory) manufacturer in the world and supplies commoditized and specialized DRAM products to the PC, graphics, mobile, cloud computing, automotive, and embedded markets.
Micron Technology (MU) operates in a market governed by an oligopoly, including itself, Samsung (SSNLF), Western Digital (WDC), and SK Hynix. These players are currently facing a market downturn after two years of an upturn.