45.05 +0.04 (0.09%)
After hours: 7:44PM EDT
|Bid||45.03 x 3200|
|Ask||45.08 x 3200|
|Day's Range||44.34 - 45.37|
|52 Week Range||28.39 - 53.68|
|Beta (3Y Monthly)||1.85|
|PE Ratio (TTM)||5.20|
|Earnings Date||Sep 18, 2019 - Sep 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||47.85|
U.S. stocks rallied Monday morning in an at least temporary reprieve after a mid-August rout. U.S. government bond yields rose across the curve, led by yields on 30-year bonds and 10-year notes.
Micron Technology (MU) started the mass production of 16Gb DDR4 products using 1z nm (nanometer) process technology. MU has returned over 37% YTD.
David Shaw got his start in 1988, when he convinced the Wall Street investment firm Paloma Partners to back him in the new field of quantitative trading. Shaw, a brainy buy with a PhD in computer science and a complete neophyte in financial world, told his backers, “I think I can use technology to trade securities.”He was right. His firm, now the D.E. Shaw Group, has taken it’s initial $28 million in capital and grown it into a $47 billion hedge fund, earning more than $25 billion for its investors. Shaw himself stepped retired from active leadership of the firm in 2001, although he remains connected to the trading operations.In its most recent 13F filing, the D. E. Shaw Group revealed that it has upped its holding in Micron Technologies (MU), while cutting back drastically on American Micro Devices (AMD). A brief look at the numbers tells the story.Shaw Group bought 1,386,790 MU shares, boosting the fund’s holding by 53%. At the same time, the filings show that the fund reduced its holdings of AMD by 2,996,831 shares, or 65%. Prior to the transactions, Shaw Group’s holding in AMD was almost double that in MU; the fund has now reversed that position and holds more than twice as many Micron shares as AMD. It’s a drastic change and deserves some closer examination.The Selling Case for AMDAt first glance, AMD doesn’t look like a stock to sell. It’s up almost 73% year-to-date, and is one of 2019’s successful turnaround stories. AMD chips have quickly developed a reputation for high performance and quality, and that in turn has given them the leverage needed to draw market share away from rival chip-maker Intel (INTC). AMD have been on a tear. So why the sudden change in outlook by one of the world’s smartest quant trading hedge funds?The answer may lie in that year-to-date gain. AMD opened at $18.01 on January 2; it closed at $31.18 on August 16. That gain has investors worried that, for now at least, AMD is played out, without significant room for near-term growth. Recent reviews from top Wall Street analysts support this contention.5-star analyst Cody Acree, of Loop Capital, initiated his coverage of AMD with a Hold rating, saying, “We like the solid share gains but sees the valuation as fair.” His price target, $32, is in line with that, suggesting just a 2% upside to the stock. Acree is joined by Mizuho’s Vijay Rakesh and Susquehanna’s Christopher Rolland. Both 5-star analysts reiterate Hold ratings on AMD, and maintain their price targets of $36 and $34 respectively. Overall, AMD’s analyst consensus rating remains a Moderate Buy, but that appears to be shifting. Of the 10 buys, 11 holds, and 1 sell assigned in the past three months, 3 holds were given just last week. The stock sells for $31.18, with an average price target of $34.10. This suggests an upside potential of 9%.The Buying Case for MicronBetween June 2018 and June 2019, Micron didn’t look like a stock to buy. The combination of increasing supply and slower demand in the memory chip market put the obvious price pressure on the company, and MU shares were squeezed, losing half their value. MU seems to be coming out of the woods, however, as improved business confidence has led to increased demand which has in turn started working down the memory chip segment’s oversupply problem. In a conference call, Micron management said, “Demand is starting to return in a meaningful way, driven by renewed demand in the cloud and graphics segments.”Micron’s year-to-date gain of 37% has outperformed the markets, but has not sparked worries that it’s maxed out. Investors look at MU and see a stock that’s improving, with room for more growth.5-star Needham analyst Rajvindra Gill lays out the bulls’ case for MU. He says, “We view supply cuts as positive developments for Micron and the rest of the memory industry. We continue to be bullish on a stabilization in the supply-demand dynamic for NAND and DRAM in 2H19.” Gill’s $50 price target implies and upside of 14% for MU shares.Sidney Ho of Deutsche Bank, concurs in the bullish assessment, writing, “We have confidence that the company's August quarter will be the trough this cycle.” Ho raised his price target by 22%, to $55, indicating a potential 26% upside.The rest of Wall Street largely buys into what the chip giant has to offer, as TipRanks analytics reveal MU as a Buy. Out of 22 analysts polled in the last 3 months, 13 are bullish on Micron stock while 6 remain neutral, and 3 are bearish. (See MU'S price targets and analyst ratings on TipRanks)
The Dow Jones Industrial Average may have ended on a positive note last week. However, Wednesday's 800-point drop was perhaps the first major warning of a pending recession. Naturally, semiconductor firms like Micron Technology (NASDAQ:MU), which depend on a robust economy, were under a spotlight. Year-to-date, Micron stock is up over 40%, but many investors fear that could change in a hurry.Source: Charles Knowles / Shutterstock.com For one thing, the already ugly U.S.-China trade war has escalated in recent weeks. From harsh rhetoric ramping toward accusations of currency manipulation, no resolution to this conflict appears in sight. That's despite the fact that both sides have demonstrated evidence of economic pain. For instance, key metrics, such as the producer price index, have turned negative on China.However, new reports indicate that President Donald Trump's aggressive prosecution against Chinese malfeasance has also hurt American businesses. One confirming point is that consumers are paying more for products or parts imported from China. Ultimately, that doesn't do the MU stock price any favors as 57% of Micron's total revenue comes from China.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result, conservative investors may want to sit out Micron stock until the smoke clears. But for the risk-tolerant, shares might fare better than many other companies. Here are three reasons why: Trump Is a Long-Term Benefit for Micron StockUndoubtedly, Trump has a tough challenge for the upcoming 2020 election. Primarily, he must hope and pray that the economy rebounds under his watch. Otherwise, he might pay for it with a Democratic victory a little more than a year from now. * 10 Cheap Dividend Stocks to Load Up On Unlike prior administrations, the voting public will show zero mercy for Trump. That's because a major reason why we're having economic troubles is due to the trade war. Even if his handling of this conflict is justified -- and there are reasons to believe this is the case -- voters will nevertheless blame Trump.That said, the MU stock price is one of the direct beneficiaries of Trump's no-nonsense economic policy.Micron knows full well the depths the Chinese will go to steal intellectual property. They were the victims of a complex heist previously only known to Hollywood scripts. Of course, such an environment negatively impacts Micron stock. It's distracting enough that the company competes in a cutthroat market. Adding government-endorsed espionage takes it to another dimension.Fortunately, MU executives don't have to dwell on this scenario any longer. Trump sent a very harsh signal to China that their misconduct won't be tolerated. Given the economic damage on both sides, I doubt the Chinese are eager to repeat their offenses. 5G Will Support the MU Stock Price Over the Long RunAs I mentioned up top, around 57% of Micron's total revenue comes through Chinese channels. That's fine if we have a robust relationship with the world's second-biggest economy. But in this juncture, it's almost catastrophic.So, why hasn't the MU stock price absolutely plummeted in the wake of the Dow Jones slaughter? In my opinion, a big reason why stakeholders have remained positive is the 5G rollout. This is a game-changer for the wireless industry and Micron plays a pivotal role.As you know, the company specializes in memory chips. A broader shift to cloud computing, data centers and the digitalization of everything has previously bolstered Micron stock. As an aside, these industries will continue growing despite their present weakness. This dynamic should help mitigate volatility associated with the trade war.More importantly, Micron is busy developing next-generation chips that feature a substantial boost in memory capacity. Further, these chips will play an integral role in future smartphones, including foldable phones.You can also expect government support for our big tech industries. Sure, federal oversight agencies aren't too impressed with this sector right now. However, when we're locked into a tech cold war, it just doesn't make sense for our government to punish our best and brightest. Micron Stock Is Built Like a TankThe final silver lining in this trade war mess is the financials underlining Micron stock. Here's the obvious reality about the coming downturn (if we have one): Everyone will suffer.Initially, that sounds like a terrible thing for MU stock. As a tech firm and a "risk on" name, it's very sensitive to market pressures. However, Micron is built like a tank relative to other sector players.For example, the company has a very strong balance sheet that got even stronger with debt paydowns. Its cash position has stayed stable over the last several quarters, holding $6.7 billion at last count. Additionally, Micron enjoys profitability margins that exceed most other semiconductor names.In other words, if the markets encounter turbulence, MU can weather storms that other rivals can't. That positions the company to take advantage once the turmoil subsides. Further, with high demand for 5G and other tech, Micron can mitigate some of the risks associated with China.Having said all this, Micron stock is not for the faint of heart. But if you're looking for a tech discount, this might fit the bill.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Reasons to Believe in Micron Stock Despite Market Fears appeared first on InvestorPlace.
Investing.com - Micron (NASDAQ:MU) led semiconductor stocks higher on Monday, underpinning a broader rally in tech, as Washington decided to extended a reprieve given to Huawei that allowed the Chinese telecom to continue to do business with U.S. companies.
Micron Technology, Inc. (NASDAQ:MU) saw a significant share price rise of over 20% in the past couple of months on the...
Shares of Micron (NASDAQ:MU) have been volatile, which is no surprise given the current landscape of the stock market right now. Take virtually any news headline and it's easy to see its impact on the stock market.Source: Shutterstock The yield curve, slowing national economies like Germany, the market and currency implosion in Argentina and of course, the trade war, can all impact stocks. But the trade war is the big one for Micron stock because the conflict has a huge impact on semiconductor companies.In the case of MU, sometimes the impact of the conflict is direct and other times it's indirect. But if MU's semi, memory and chip peers -- like Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX), Advanced Micro Devices (NASDAQ:AMD) and Western Digital (NASDAQ:WDC) -- are struggling, there's a good chance that MU stock will struggle too.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, supply/demand issues have weighed on memory manufacturers like MU as well. That's why we've slowly seen estimates for MU's top and bottom lines dwindle over the last nine months. * 10 Cheap Dividend Stocks to Load Up On There has been optimism that MU and its peers have reached a bottom. If that's the case, it would be quite a powerful positive catalyst for MU stock price. Valuing Micron StockThe one thing investors have always pounded the table on when it comes to MU is its low valuation. But that low valuation is there for a reason; specifically, MU operates in a boom-bust business cycle. When the climate is right, its sales and earnings surge. But when demand dries up or supply builds too much (or both), its earnings and revenue are hammered.No one wants to pay an average price=earnings multiple for that, let alone a premium. Some analysts, however, have said that if Micron stock traded with the same multiple as the S&P 500, then MU stock price would be much higher than it is.But modeling a price target on a stock based on the assumption that investors will dramatically raise its valuation is a fool's game. That doesn't happen often and when it does come to fruition, there's no way of knowing what the final valuation will be. Investors really need to analyze each stock based on its own merit and history.In Micron's case, it has a low valuation, and that probably won't change unless a modification of its underlying business alters its outlook. Analysts, on average, expect MU to generate earnings per share of $6.22 this year, leaving Micron valued at 6.75 times the average EPS estimate.However, the average EPS estimate for 2020 is just $2.50. If the average estimates prove correct, MU's EPS will sink 60% year-over-year in 2020, and MU stock is trading at 16.8 times its 2020 EPS. Moreover, the average estimates call for MU's sales to fall 24% this year and another 15% in 2020.The average estimates for 2020 may be too bearish, but that emphasizes exactly what we're talking about: Micron's business is too volatile to command a higher valuation. Trading MU Stock Click to EnlargeThe wild swings of MU's earnings and revenue are too much for many investors. For those who do want to buy Micron stock, perhaps it's best to accumulate it when the news has worsened considerably and sell the shares when it seems like blue skies for MU.On Tuesday, MU stock fired higher, briefly eclipsing $45. However, the prior resistance zone between $44 and $45 held it in check. It didn't help that Micron's 38.2% retracement level is near $44 as well, while its declining 20-day moving average was $43.11.We have been highlighting this resistance zone for months now, and there's currently a lot of resistance in this area.The rhetoric about MU is improving, but investors are still pretty cautious on the name. Luckily for the owners of Micron stock, the charts have somewhat definitive levels.Bulls either need to see Micron stock price overcome its resistance or get cheaper before buying Micron stock. Bulls who are waiting for the shares to overcome resistance should look for a close north of the $44-$45 zone. If that happens, MU stock can reach its July highs near $49.Aggressive bulls waiting for MU to get cheaper may feel confident near $41. There, MU stock price will be near the 50% retracement level and the 50-day moving average, which is trending higher. Conservative bulls may wait for a correction down into the $39 area. There it will encounter prior support from July, as well as the 200-day moving average. Further, the 61.8% retracement level near $38 should help boost MU stock.In either scenario, buyers need to use extreme caution below $38. If this level give way, MU can decline into the low- to mid-$30s.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post A Low-Risk Way to Trade Micron Stock appeared first on InvestorPlace.
Do you hear that? That's the faint sound of the music finally starting to play again for Micron (NASDAQ:MU). For the past several quarters, the music has stopped playing for the chipmaker, and Micron stock has dropped as a result.Source: Shutterstock Specifically, demand in the company's core memory markets has dried up, while supply levels have soared. The combination of falling demand and rising supply has created an adverse operating environment for the chipmaker, wherein revenues, margins, and profits have all plummeted. This has led to MU stock dropping from $60 in June 2018, to $30 by June 2019.But, the music is finally starting to play again. Multiple signs have emerged recently that imply that global economic conditions have improved gradually over the past few months. In turn, business confidence is coming back, and semiconductor demand is starting to recover. This demand recovery is eating away the market's supply glut, and inventory levels are starting to moderate.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNet net, Micron appears to be in the beginning stages of a big recovery, defined by renewed demand, moderating supply, and rising revenues, margins, and profits.Because of this, now looks like a good time to finally buy back into Micron stock. As I've stated many times before, MU is the sort of stock you want to buy when the music is playing, and sell before the music stops playing. Right now, the music is starting to play again, meaning it's time to get bullish. * 10 Stocks Under $5 to Buy for Fall Micron's Fundamentals Are RecoveringMicron's fundamentals, which deteriorated meaningfully over the past several quarters, are finally starting to recover.Specifically, despite noise about the trade war and yield curve inversion, the data suggests that the global economy slowed down in early 2019, but is now finally starting to stabilize. Just look at the OECD's global Composite Leading Indicator (CLI).It has dropped every month over the past twelve months. But, the sequential declines have moderated significantly over the past few months, and the broad takeaway is that global growth - after several months of slowing - is finally starting to stabilize. Forthcoming rate cuts from the Fed should further help global economic growth trends improve.Improving global economic growth trends have led to reinvigorated semiconductor market demand. Micron said in a recent conference call with investors that demand is starting to return in a meaningful way, driven by renewed demand in the cloud and graphics segments. On that same call, management said that days of inventory outstanding, which hit a record-high 143 last quarter, is set to come down in the fourth quarter, mostly due to this renewed demand.In other words, Micron confirmed that the company's fundamentals are finally starting to recover. Usually, such recoveries last several years. As such, it appears that Micron is in the first inning of a multi-year recovery. That recovery should get (and keep) Micron stock back on a winning trajectory. Micron Stock and Long Term TrendsIn the long term, MU stock looks good, mostly because it's supported by favorable secular trends.Specifically, Micron makes chips that serve as the building blocks for all of tomorrow's most important markets. This includes end-markets like 5G, IoT, AI, automation, data, so on and so forth. Thus, in the long run, there are sufficient secular demand drivers here to keep Micron's revenue growth in solidly positive territory for the foreseeable future.Further, Micron's margins have been on a long term uptrend since 2000. Since then, Micron's gross and operating margins have made consistently higher highs and higher lows. There's no reason to believe that this uptrend won't continue for the foreseeable future, given that Micron is supported by favorable demand drivers.As such, in the long run, Micron's revenues, margins, and profits should all run higher, meaning that this recent downturn is really just "noise" in the big picture. It's noise worth paying attention to. MU stock dipped 50% at one point. But, it's also noise worth buying into once the fundamentals start to improve.That's exactly where we are today. Bottom Line on Micron StockWhen it comes to Micron stock, buy when the music is playing, and sell when the music stops playing. From June 2018 to June 2019, no music was playing. But, in July 2019, the music started playing again, as signs were emerging that demand was coming back into the picture at the same time that supply levels were moderating.Micron management has confirmed that these rising-demand, moderating-supply trends have persisted into August. Thus, there's reason to believe that the music will keep playing for the foreseeable future. So long as that music keeps playing, MU stock should continue to bounce back.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Fundamentals and Trends Say Micron Stock Finally Is Worth the Risk appeared first on InvestorPlace.
On Friday, chipmakers Nvidia and Applied Materials will be in focus following their quarterly results that were released Thursday evening.
Investing.com – Nvidia on Thursday struggled to regain its footing, following a drumming in the market a day earlier, even as analysts touted cautious optimism ahead of the chipmaker's results due later today.
On Tuesday, Aug. 13, stocks surged on some helpful trade news. Basically, the U.S. has backed off its threats to impose new tariffs on Chinese imports that were set to go into effect early next month. In gestures of good faith, representatives from both sides will hold talks in a couple of weeks, and the U.S. will avoid levying the new tariffs until mid-December.Source: Shutterstock "Further, as part of U.S. Trade Representative's (USTR) public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles," said the USTR in a statement. "Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing."After looking at that list of products, I don't think it's surprising that a variety of technology stocks responded positively to the news. One of those names was Micron (NASDAQ:MU stock), which surged 4.84% on above-average volume.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs has been widely noted, MU is highly sensitive to tariffs, and there are a slew of diverging opinions on Micron stock out there. Seemingly, for every new bearish call on the maker of NAND and dynamic random access memory (DRAM) chips, another analyst becomes bullish on Micron stock. Being neutral on Micron stock in the near-term may be the appropriate call. * 10 Stocks Under $5 to Buy for Fall What's Next for MUAs I mentioned earlier this month, Micron operates in commoditized, price-sensitive corners of the semiconductor market, leaving the company little in the way of pricing power. Simply put, DRAM prices plunged in Q2. That is one very good reason to be careful with MU stock, particularly after Tuesday's pop."According to investigations by DRAMeXchange, a division of TrendForce, quote trends for various products, including commodity DRAM, server DRAM and consumer DRAM, fell by nearly 30%, with the exception of discrete mobile DRAM/ eMCP products, whose declines fell within the 10 -20% range," said DRAMeXchagne in a recent note. "Server DRAM prices suffered the steepest fall, registering a near-35% decline. Observing the market, we see that although 2Q sales bit grew over the previous quarter, quotes kept on falling, causing total DRAM revenue to fall by 9.1% QoQ in 2Q."In addition to those falling sales, which alone are bad enough, Micron and its marquee rivals in the DRAM space are experiencing contracting profit margins."An observation of the suppliers' profitability shows that DRAM suppliers' operating profit margins all registered declines due to the steep price fall in 2Q. Samsung's operating profit margin declined the least among the top three (from 48% to 41%), but its DRAM gross margin managed to come in above 50%," according to DRAMeXchagne. "The fall in quotes during Micron's fiscal quarter, beginning from March and ending in May, rivals that of Korean suppliers, and thus their operating profit margins fell from 46% last quarter to 35%. Suppliers' profitability will be squeezed further in 3Q looking forward as quotes continue to descend."Whether it's Micron stock or any other name, investors should always ponder the efficacy of owning shares of a company that's in an industry with declining revenue AND falling profit margins. The Bottom Line on Micron StockAs mentioned earlier, analysts are divided on MU stock. Citigroup's Christopher Danely recently hit the shares with a "sell" rating and a $30 price target, well below the current MU stock price of around $42. However, Danely said MU stock price could go to $60 over the long-term."Since 2001, Micron's gross and operating margins have consistently put in higher [cyclical] highs and higher [cyclical] lows," said the analyst.On Wall Street, being short-term bearish and long-term bullish can be sort of a cop out, but with Micron stock, that may just be the most appropriate way of viewing the name right now. DRAM demand data confirms near-term headwinds exist, but a cyclical trough could occur sometime in the next 18 months or so and that would bode well for MU stock price.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post One Good Day for Micron Stock Doesn't Make It a Buy appeared first on InvestorPlace.
BOISE, Idaho, Aug. 15, 2019 -- Micron Technology, Inc. (Nasdaq: MU), today announced advancements in DRAM scaling, making Micron the first memory company to begin mass.
News Highlights Introduction of 16Gb LPDDR4X extends Micron’s industry leadership in low-power DRAM with improvements in power consumption, speed and the industry’s.
Memory stores what has happened in the past, but can’t tell you what will happen in the future. It seems the same is true of memory companies.