42.96 -0.10 (-0.23%)
After hours: 7:32PM EDT
|Bid||42.95 x 3200|
|Ask||42.98 x 29200|
|Day's Range||42.93 - 44.10|
|52 Week Range||28.39 - 58.15|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||4.98|
|Earnings Date||Sep 18, 2019 - Sep 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||43.03|
Investing.com - Micron (NASDAQ:MU) fell on Tuesday, even as UBS raised its price target on the chipmaker's stock as analysts downplayed expectations that the recent pop in memory prices amid export restrictions on Korea would continue.
Investors who calculated that Micron (NASDAQ:MU) stock had bottomed as June began to wind down have been nicely rewarded. Since June 25, MU stock has surged 36%. It was up again on Friday, closing at $44.51 for a 2.37% pop that capped another week of gains and propelled MU stock to a new 2019 high.The question is whether Micron stock has rallied to the point where it is now overpriced or it still has room to climb further. After all, just a year ago, MU was over $57.Source: Shutterstock The Huawei Ban FizzlesOne of the big wins for Micron over the past month started as a blow that kneecapped MU stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip The trade war with China has been a challenge for most U.S. tech stocks, but Micron has particularly high exposure to it, as roughly half of its revenue comes from the Chinese market. And one Chinese company -- Huawei -- accounted for a whopping 17% of MU's revenue in the first half of 2019. When the U.S. government announced a ban on May 15 that prevented American technology companies from selling components to Huawei, the fallout was immediate for Micron. MU stock tanked at the prospect of such a big chunk of its revenue simply evaporating.However, that dire scenario didn't last. At the G20 Summit in June. President Trump announced that U.S. companies would be allowed to continue selling products to Huawei. Since that reprieve, Micron stock, which had been in the doldrums, has made a comeback.In the final week of May and through June, as pessimism among investors set in, MU was frequently trading for under $33. The reversal of the Huawei ban set the stage for a three-week run that continued on Friday and now has MU stock at its highest level in 2019. Also helping the rally was MU's better-than-expected third-quarter earnings report on June 25. Micron's revenue was down nearly 39% year-over-year, but its revenue and earnings handily beat analysts' average expectations. Higher DRAM Prices Could Further Boost MU StockMicron's primary source of revenue is DRAM memory chips, and its second-largest business is NAND memory chips. Demand for memory used in computers, smartphones and other devices -- in the form of DRAM and NAND -- is cyclical, as the owners of MU stock have discovered. The price of DRAM went through the roof for several years, starting in 2016, before dropping in 2019. Analysts, on average, have called for DRAM prices to decline by up to 25% in all of 2019. Hit by a combination of increased manufacturing capacity and declining smartphone sales, NAND prices have also been dropping. Micron stock has been heavily impacted by these price declines. As demand for DRAM and NAND rose from 2016 to 2018, resulting in higher prices, MU stock went from under $10 in early 2016 to over $61, its highest level in two decades, at the peak of the market in the spring of 2018.As last week wound down, DRAM prices unexpectedly spiked. DRAM prices rose for several consecutive days, jumping 4.72% during the period, according to DRAMeXchange, which tracks the worldwide DRAM spot market.The price hike was triggered by a trade dispute between Japan and South Korea that escalated last week, impacting exports from South Korean technology companies. And it just so happens that two out of the three largest producers of DRAM -- Samsung and SK Hynix -- are based in South Korea. The ripple effect of the trade dispute has affected the global supply of DRAM, causing prices to go up. That's unexpected good news for Micron.With neither country backing down, the restrictions on DRAM exports could be prolonged. A continued recovery of DRAM prices would certainly boost MU stock.So can Micron stock continue to climb this year? After the rescinding of the Huawei ban and the inception of the trade dispute between South Korea and Japan, MU's revenue outlook is better than expected. If both trends continue, these factors alone - and the boost in revenue they provide - should enable MU stock to climb meaningfully.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Can Micron Stock Rise Further in 2019? appeared first on InvestorPlace.
Advanced Micro Devices (NASDAQ:AMD) is back at the highs. The AMD stock price cleared $33 last week, something it's managed to do a few times in the past year. Each time, those levels have proven to be bad news for Advanced Micro Devices stock.Source: Shutterstock AMD stock got there for the first time last September, reaching a 12-year high at the time. It immediately dipped. After two more tries, the chip sector as a whole collapsed. The AMD stock price went from $33 to $17 in a matter of weeks.AMD stock briefly touched $34 last month. It fell promptly declined 15% over the next five sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's pretty clear that levels around $33-$34 have proven to be resistance for the AMD stock price. The question now, particularly with Q2 earnings on the way in two weeks or so, is whether this time will be different. * 7 Dependable Dividend Stocks to Buy The Risks to the AMD Stock PriceThere are three reasons to see current levels as potentially risky for Advanced Micro Devices stock. The first is precisely that history, particularly in the context of chip stocks more broadly. Big earnings from Micron (NASDAQ:MU) have helped boost the sector in recent weeks, admittedly.But semiconductor stocks have seen quite a bit of volatility over the past year. Micron may have touted optimism - but Broadcom (NASDAQ:AVGO) did largely the opposite. Even before those reports, this has been a space where investors are best off zigging while the market zags, buying when sentiment turns sour and selling when optimism returns. That's held for AMD as well, obviously, given the stock has doubled from December lows.As such, resistance here may be firm. And that risk is buttressed by fundamental concerns. As I wrote last month, at those June highs, AMD stock isn't cheap. It trades at over 32x next year's consensus EPS. The average Wall Street price target still sits below the current price.Analysts don't always have it right, obviously (that's been particularly true in the chip space over the past eighteen months), but 32x is a big multiple for chip stock. Investors in Nvidia (NASDAQ:NVDA) learned what happens when an investor overpays for growth in such a cyclical industry. If only on a short-term basis, investors in Advanced Micro Devices have learned the same lesson a few times.And the third risk for AMD is the earnings report on the way, likely at or around the end of this month. Expectations clearly are high. AMD has stumbled after earnings in the past - most notably with a 22% decline after the Q3 report in October. AMD needs a big quarter to keep a repeat from occurring this time around. The Case for Advanced Micro Devices StockThe simple answer to all those worries is: so what? AMD stock has climbed the "wall of worry" for years now. After all, this was a $2 stock as recently as 2016, with real fears that the company might eventually declare bankruptcy.That's obviously no longer the case. AMD's new chips have made it a formidable competitor to Nvidia and Intel (NASDAQ:INTC). Intel's repeated mistakes only increase the possibility of more market share gains, more growth, and a higher AMD stock price. And those self-inflicted wounds at AMD's key competitor, along with reports of strong PC sales, suggest Q2 numbers will be impressive.Broadly speaking, this simply is a much better business than it was, and it's a really good business on its own. The "old" Advanced Micro Devices was a second-tier provider of chips for low-priced PCs. But it's now a more diversified player in terms of both PCs and growing end markets like data centers. AMD stock might not be cheap, but it shouldn't be cheap. The Bottom Line on Advanced Micro Devices StockBoth sides can make a strong case at the moment, which makes Q2 earnings particularly important. Technically and fundamentally, AMD stock is likely to move further in whatever direction it trades after the report.Big numbers lead to higher earnings estimates and likely a series of analyst upgrades that can further goose the stock. That, in turn, pushes AMD through resistance, which usually (though not always) triggers higher prices.Anything less, however, and history suggests Advanced Micro Devices stock could have a problem. We've seen AMD move from $33+ to under $30 in a blink. Bad news, or even an outlook that doesn't quite match currently optimistic expectations, could do the same, or worse.All told, I'd expect that a month or two out, AMD stock isn't trading at $33. But which way it moves will depend largely on what kind of story Advanced Micro Devices can tell with its second-quarter report.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Advanced Micro Devices Stock Could Be Set to Finally Bust Through appeared first on InvestorPlace.
Is the market rally justified? Corporate earnings are at the lowest level this year. We might be heading into an "earnings recession."
The share price of Micron Technology has been testing the highs of February, March and April but it has not yet decisively broken out on the upside. In this daily Japanese candlestick chart of MU, below, we can see that prices are above the bottoming 200-day moving average line and the rising 50-day line. The daily On-Balance-Volume (OBV) line recently turned up telling us of a shift from aggressive selling to aggressive buying.
The Trump administration may start approving certain U.S. companies to sell their products to China's Huawei Technologies Co. in as soon as two weeks, Reuters reported Sunday. U.S. chipmakers, including Qualcomm Inc. , Intel Corp. and Micron Technology Inc. , have reportedly pushed to resume sales to the Chinese tech giant, which bought about $11 billion worth of U.S. components in 2018. The U.S. banned most sales to Huawei in May, but Commerce Secretary Wilbur Ross has recently said sales licenses will be issued in cases where there is no national security risk. Reuters reported licenses will likely be issued on a case-by-case basis, starting in the next two to four weeks.
As Wall Street gets ready to see how tech companies fared in the second quarter, the mantra about a ‘better second half’ is likely going to be a refrain in company conference calls
Today, China released its trade data for June. China’s dollar-denominated exports fell 1.3%, while its imports in US dollar terms fell 7.3% last month.
(Bloomberg) -- In a packed ballroom in Beijing’s national convention center, the executive from a major technology company laid out ambitious plans for the future of artificial intelligence in China. He explained how customized semiconductors would help power everything from autonomous cars to voice-activated industrial machines.Only this wasn’t a state-backed enterprise. This was Intel Corp., the largest U.S. chipmaker.The company’s AI chief, Naveen Rao, pledged to work closely, “engineer to engineer," on cutting-edge technology with the 7,000 people that attended Baidu Inc.’s annual developers conference last week. Intel was the top sponsor of the event.Rao made no mention of politics, though his overwhelming support of Baidu, a Chinese national tech champion, sent a powerful message: Even as U.S. and Chinese leaders are locked in a fierce battle over technological supremacy, companies like Intel remain big backers of China’s tech industry because they rely on the country for significant contributions of revenue, production chains and even talent.Intel made 27% of its revenue in China last year, more than in the U.S. or any other market, but it’s fighting to hold on to customers there that it spent decades cultivating. Like many American multinationals with large businesses in the country, Intel is walking a fine line between holding on to that lucrative market and keeping in Washington’s good graces. Neutrality is becoming a tougher stance to maintain."There’s been a psychotic break” in what some leaders in the U.S. government want and what American businesses want, said Josh Dorfman, founder of One Thousand Million, a China-focused consultancy and think tank based in Dallas. "Unlike in China, U.S. companies aren’t beholden to the country and are not obligated in any way, shape, or form to be patriotic. They want to make money."An Intel spokesman said the company remains engaged with Chinese customers that aren’t on the U.S.’s list of those it sees as a security threat. China is a substantial market for Intel and it has no intention of pulling out now.Intel isn’t alone. Apple Inc. is heavily dependent on China not only for the manufacture of Mac computers and iPhones but it’s also a major consumer market, accounting for about 20% of sales. Even as U.S. President Donald Trump threatened tariffs that would hit Apple products, the California-based company was making plans to shift production of its new Mac Pro computer to China, sending a clear signal of support.While some companies are considering moving part of their production out of the country, many others are making gestures of goodwill. Walmart Inc. last week pledged to invest $1.2 billion in China to upgrade logistics distribution centers. Boeing Co. is in negotiations to sell 100 jetliners to Chinese airlines in one of its largest-ever deals, Bloomberg News reported. And last month, 600 U.S. companies and trade groups signed a letter to Trump warning of tariff-related hits to their businesses.IBM’s Greater China group chairman Liming Chen said that the escalation of China-U.S. trade frictions has created a "confusing environment" for businesses. He outlined International Business Machine Corp.’s long relationship with China, dating back to its products first entering the country in the 1920s, and formally establishing a Shanghai office in 1936."IBM has participated in the rapid development of China over the past 40 years, while China has also nourished IBM," he wrote in a post on WeChat in June, calling the country an "indispensable part of our global strategy map."The U.S.-China trade war is anchored in competition to dominate the next generation of wireless networks and other technologies as much as politics. The Trump administration worries that American companies in search of profits could actually help China’s tech industry eclipse U.S. prowess in sensitive areas like artificial intelligence and machine learning.The chairman of the U.S. Joint Chiefs of Staff, Joseph Dunford, lambasted Alphabet Inc. in March for Google’s AI work in China, which he alleged "indirectly benefits the Chinese military." Trump repeated the critique in a subsequent tweet, questioning the Google parent’s loyalties. Google has said it doesn’t work with China’s military.The same nationalistic fervor is partly behind the Commerce Department’s May prohibition on selling American components to Chinese telecom behemoth Huawei Technologies Co. Despite Trump’s recent pledge to ease restrictions, Huawei remains on America’s so-called entities list and U.S. firms must apply for special licenses to sell parts to the company.That hasn’t stopped chipmaker Micron Technology Inc. from feverishly trying to find ways to keep supplying the company, one of its largest customers. The U.S. semiconductor industry also lobbied the Trump administration to loosen restrictions on Huawei.Still, American tech companies are facing a new global reality. They may no longer be able to overlook geopolitics in favor of profits. China may not be the growth savior it once was.Tech companies "must now live in a world where their Chinese business partners and global value chains at any given day could blow up," said James Lewis, director of the tech and public policy program at the Center for Strategic and International Studies, a Washington think-tank. “Trump might have backed off Huawei for now but next week it could be something different and any of these companies are fair game.”Lewis, who previously served as the U.S. Commerce Department’s lead for national security and espionage concerns related to high-technology trade with China, said Chinese firms are also racing to become less reliant on the very American firms bending over backwards to keep their business.Splitting the two economies won’t be easy. Research, development, manufacturing and talent in the U.S. and China are still very much interconnected."Innovation by American companies is fueled by access to the Chinese market," said Samm Sacks, cybersecurity policy and China digital economy fellow at think tank New America, in Congressional testimony in May.For Intel’s AI chief, collaboration with China helps the company to build better products and bring new technology to market fast.“I’m proud of the strong and growing partnership between Intel and Baidu,” Intel’s Rao said in Beijing, after greeting developers with a hearty “nihao.” “By working together to advance AI, Baidu and Intel are helping to usher in a world where AI is ubiquitous.”\--With assistance from Gao Yuan.To contact the reporters on this story: Shelly Banjo in Hong Kong at email@example.com;Zheping Huang in Hong Kong at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Apple (AAPL) stock still rests 13% below its 52-week high despite its roughly 30% climb in 2019 amid trade war worries and a slowdown in iPhone sales. Now, let's peek ahead to see what investors should expect from Apple's third-quarter fiscal 2019 financial results.
In his second day of testimony, Fed Chair Jay Powell essentially confirmed that a rate cut is coming this month. For the market's part, the Fed Funds futures are pricing in at least a 25 basis point cut this month. To be fair, the market was already pricing in such a cut before Powell's comments, but even so, the market was again unable to hold onto a bulk of its opening gains. Let's look at a few top stock trades for Friday. Top Stock Trades for Tomorrow 1: Canopy Growth Click to EnlargeShares of Canopy Growth (NYSE:CGC) are taking a tumble on Thursday, down almost 5% so far on the day. However, the breakdown could be more than just a shakeout.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCGC stock is cracking through a floor of support, showing that the descending triangle -- a bearish setup -- is in full force. If Canopy Growth can reclaim the $38-ish area and rally over $40, CGC could repair some of the technical damage. * 10 Stocks to Sell for an Economic Slowdown Below $38 and the setup remains bearish. Top Stock Trades for Tomorrow 2: Micron Click to EnlargeA few months ago we highlighted a potential breakout in Micron (NASDAQ:MU) with an ascending triangle -- the opposite setup of CGC. However, when uptrend support (blue line) gave way, the setup failed.Now, MU stock is back up into prior resistance near $44. Given the big run we've seen, I am going to assume $44 is resistance unless Micron stock can push through. On a retreat, let's see if $41 holds as support. If not, a retest of $39 could be on the table. Top Stock Trades for Tomorrow 3: Bed Bath & Beyond Click to EnlargeMan, Bed Bath & Beyond (NYSE:BBBY) has been a total disaster over the past few years. Shares have cratered 80% over the last five years, with Thursday's 3% fall not doing much to help.On the plus side though, BBBY stock has rallied strong off the lows at $10.43.At this point, we need to see the lows from December hold, at $10.21. Below and more selling can take place. On a rally, let's see if BBBY can reclaim the $12.50 level and the 10-week moving average. Top Stock Trades for Tomorrow 4: Cigna Click to EnlargeShares of Cigna (NYSE:CI) are ripping higher by more than 8% on Thursday. That's great news for bulls, although a stronger close would have been nice.CI stock ripped over the 200-week moving average, but was rejected by the 50-week moving average at $183.56. Furthermore, the 200-day moving average stood strong as resistance at $182.40.Further, the key $180 level couldn't be reclaimed either.So what now? * 3 Forgotten Tech Stocks Worth Remembering I want to see the $165 level and 200-week moving average act as support. If CI can maintain some of its newfound bullish momentum, I want to see how it handles the $180 level on the upside, as well as the 50-week moving average and 200-day moving average. Above could pave the way to $200. Otherwise, it could act as resistance.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 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 4 Top Stock Trades for Friday: CGC, MU, BBBY appeared first on InvestorPlace.
Memory stocks have been on the rise since June 25, when chip maker Micron Technology reported better-than-expected earnings results.
Nvidia (NASDAQ:NVDA) stock is showing small signs of progress. NVDA stock has been a falling knife over the past six months. But now, the stock, while not recovering tremendously, has at least stopped going down for the time being. Is Nvidia stock's seemingly endless plunge finally over?Source: Shutterstock The answer likely comes down to the following question: Will NVDA stock catch up to the stock market, or continue to trade on its own merit? The stock market is obviously booming, with the major averages making new all-time highs. Tech stocks in particular have been on fire. Meanwhile, Nvidia stock has been going up a little with the market, but then slipping back quickly. For example, last week, NVDA hit $166, but then slipped back to $160, even as the market continued to surge. * 10 Stocks to Sell for an Economic Slowdown That's because NVDA faces a ton of company-specific and sector-specific problems. These range from excessive inventory to the product issues facing Intel (NASDAQ:INTC), and the trade war.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Semiconductor Industry Is Caught in the CrossfireThe trade war is dragging on and on. That's awful news for leading semiconductor companies such as NVDA. According to Nvidia's most recent annual report, fully 74% of the company's revenues came from Asia during its last full fiscal year. The company generated $3.4 billion of revenue from Taiwan alone last year. It got $2.8 billion from mainland China and Hong Kong, and another $2.4 billion from the rest of Asia.NVDA got just $1.5 billion of revenue from the U.S., equaling barely 10% of its overall revenues. Amazingly, the small island of Taiwan buys more than twice as much from Nvidia as all of the United States does. Needless to say, the longer the trade war goes on, the more NVDA stock and its peers will suffer negative consequences.There's been some upbeat chatter about a potential resolution to the U.S.-China trade issues. Reportedly Trump and the Chinese delegation did a lot of talking ahead of the recent G-20 meeting. And there was an agreement of sorts related to Huawei, but it appears to be more of a temporary ceasefire than a solution. Until we get something concrete, Nvidia and the rest of the semiconductor industry will likely struggle. Rivals Feeling the HeatGlobal electronics giant Samsung exemplified the trade war issues with its earnings pre-release last Thursday. Samsung makes both semiconductor chips, competing with the likes of Micron (NASDAQ:MU) in memory. while also making plenty of end products such as phones and TVs.In any case, Samsung announced that it sees its operating profits for this quarter falling by more than 50%. Samsung blamed the decline on a combination of the trade war, weak memory prices, and soft demand from other customers. Reportedly, for example, the demand for Apple's (NASDAQ:AAPL) iPhone was so sluggish that Apple will have to pay Samsung some sort of compensation for not meeting minimum order levels.When giants like Apple and Samsung are failing to meet investors' expectations, it's clear that there's a broad slowdown in consumer electronics. As great as Nvidia's technology is, NVDA can't prosper in a world in which the whole consumer electronics sector is in a slump. If Apple, Samsung etc. continue to struggle, NVDA stock isn't going anywhere, either. Why Nvidia Stock Price Can ReboundNvidia hasn't given a whole lot of details about its outlook for the rest of the year. Starting with its last quarterly earnings report, NVDA stopped providing full-year guidance. That's often a sign of trouble ahead. That said, if you're looking for a bullish case on Nvidia stock, you can patch one together.For one thing, its inventory levels have declined in some areas, particularly in graphics. It appears the overbuilding of graphics cards has ended. And while bitcoin's surge won't set off another mining boom like it did in 2017, it will probably help increase demand to a certain extent. People still use GPUs to mine cryptocurrency after all.Overall, Nvidia's revenues will probably start to flatten out by the end of the year. If nothing else, at least the jarring double-digit-percentage revenue declines across all of its business segments will come to an end. If and when the trade war ends, Nvidia should finally be able to get back to revenue growth. As is often the case for tech companies, once NVDA's revenue bottoms, Nvidia stock price should start shooting back up again. The Verdict on NVDA StockIf Nvidia stock price was trading at fire-sale levels, there'd be a case for buying NVDA at this point. The company has fantastic technology and will surely bounce back sooner or later.But Nvidia stock is still aggressively valued after its seemingly huge decline. Nvidia is now selling at 31 times its trailing earnings. If you believe analysts' average estimates, its earnings will shoot up to $7 per share over the next year, pushing the P/E ratio to a more reasonable - though hardly cheap - 23\. With its revenues still declining, however, it's hard to see how this earnings explosion is going to occur.Ultimately the trade war will get sorted out, and Nvidia will get its momentum back. But there's no reason that such a development will necessarily happen in 2019. Nvidia stock price is far from cheap at this valuation. It may go up a little if the stock market keeps roaring higher. But until Nvisia's business gets its momentum back, the stock will continue to underperform the market as a whole.At the time of this writing, Ian Bezek owned INTC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Nvidia Stock May Be Bottoming, But Don't Expect a Recovery in 2019 appeared first on InvestorPlace.
Among investment categories, the semiconductor group finds itself in an awkward situation. And within this sub-segment, traders are attempting to decipher Micron Technology (NASDAQ:MU). On one hand, MU stock has performed well following the truce in U.S.-China trade war tensions. On the other hand, the company faces fundamental challenges that could hurt its equity value.Source: Shutterstock Of course, the biggest hurdle impacting Micron stock is the computer chip market; specifically, pricing for flash-memory NAND chips and so-called "volatile" DRAM chips. Currently, the semiconductor market is experiencing a lull. For instance, DRAM chips - which largely service PCs and data servers - plummeted nearly 30% in the first quarter of 2019.Obviously, that does no good for the MU stock price. After all, Micron specializes in producing both NAND and DRAM chips.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven worse, many experienced analysts in the semiconductor space believe that the DRAM market is still vulnerable to further corrections. That puts investments like Micron stock, as well as broader competitors like Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) on notice.Here's the problem: NAND is a type of memory that is particularly useful for smartphones and mobile devices. But a time when even Apple's (NASDAQ:AAPL) once-dominant iPhone is experiencing lagging sales, NAND presents less of an opportunity. Thus, semiconductor firms' hopes rested on DRAM, and for good reason. * 10 Stocks to Sell for an Economic Slowdown Based on DRAM's unique architecture -- a densely structured chip that allows for billions of memory cells crammed into a small space -- it's best suited for data servers. Due to the burgeoning data center evolution, Micron can feed this growing demand. That benefits MU stock, provided that demand sustains itself.Evidence suggests that it's not, drawing questions for Micron stock. Complicated Narrative Surrounds MU StockBefore we dive in, you should know this: semiconductor firms ebb and flow with the underlying chip market. And whether for better or for worse, the chip market is incredibly volatile. Moreover, research firm Gartner (NYSE:IT) predicted two years ago that 2019 would be a downturn for DRAM.So far, that prediction has proven prescient. Naturally, it presents a worrying case for MU stock.Now, some investors have a tendency to ignore such high-level analysis as not being in touch with the ground floor. However, if you're thinking about buying Micron stock, you should at least understand the risk: historically, MU's pricing is intricately linked to the memory-chip market. Click to EnlargeFor instance, from January 2017 through the end of January 2018, DRAM's price-per-gigabit increased from 66 cents to 97 cents. Along the way, the pricing experienced some twists and turns.Over the same period, the MU stock price increased from $24.11 to $43.72. Like the underlying DRAM market, Micron did not have a straight shot skyward. Shares moved almost in lock-step with DRAM prices, with a correlation coefficient of 84%.I note a similar trend comparing Micron stock with total DRAM and NAND global revenues. As chip sales increase, so too does MU shares. Unsurprisingly, when chip sales stall, shareholders are taken on an unpleasant ride. Click to EnlargeAdmittedly, I'm charting the obvious. However, this data also confirms that MU stock rarely moves against the grain. So if DRAM is about to tumble deeper, it might be time to hit the exits.But that's only true if the forecasts of doom are valid. From the numbers I'm seeing, data centers have strong tailwinds. For instance, demand for cooling equipment necessary to keep data-server chipboards at optimal temperatures is increasing. That doesn't make sense unless data centers are likewise rising. Long-Term Picture Remains Bullish for Micron StockLogically, if the tides shift positively for DRAM, MU stock stands to profit handsomely. Especially at these undervalued prices, contrarians may want to consider picking up some shares.That said, it's always difficult predicting nearer-term swings. Sentiment could turn negative on absolutely silly reasons. And that could end up making me look silly as well.But where I'm more confident is the longer-term picture. In this context, I think President Donald Trump's trade war with China is the perfect tailwind, and not a dark cloud. I say this because for years, perhaps decades, American tech firms have not operated on level ground with the Chinese.Generally, Americans played by the rules. The Chinese have not. This strange, uncontested dynamic allowed the Asian juggernaut to harmfully troll the tech space.But the Trump administration is putting a hard-stop on China's shady business practices. And while the trade war hurts now, it's incredibly beneficial for our semiconductor industry's long-term, sustained growth. Bring in the DRAM factor and you have a case here for a deeply profitable discount in Micron stock.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 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Donat Let Industry Noise Deter You From MU Stock appeared first on InvestorPlace.
Micron (MU) faces multiple headwinds that make it an unsuitable investment pick. Instead investors can consider these five semiconductor stocks with significant prospects.
U.S. stock futures are trading higher to extend yesterday's gains.Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.32%, and S&P 500 futures are higher by 0.15%. Nasdaq-100 futures have added 0.10%.In the options pits, overall volume rallied back from the low readings seen around the July 4 holiday. Calls led the way with around 18.9 million contracts traded versus just 14.9 million for puts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe disparity between the two was even more dramatic at the CBOE, where the single-session equity put/call volume ratio crashed to 0.51. That's a new low for the year and reflects strong optimism surrounding yesterday's rally. The 10-day moving average fell to 0.61.Options traders swarmed the following three stocks: Delta Air Lines (NYSE:DAL), Micron (NASDAQ:MU) and Disney (NYSE:DIS).Let's take a closer look: Delta Air Lines (DAL)Earnings season will soon heat up, but a few early birds are already releasing their second-quarter numbers. This morning, Delta Air Lines reported earnings of $2.35 per share on revenue of $12.54 billion. Both metrics topped analyst estimates for the company to rake in $2.25 on $12.48 billion. * 10 Best ETFs for 2019: The Race for 1 Intensifies Traders are cheering the results with a bevy of buying in premarket trading. DAL stock is up 2% to $60.68 at the time of this writing. The up gap will land DAL at an exciting juncture. Last year's peak of $61.32 is the high-water mark for the stock and could be finally taken out in the post-earnings euphoria. That would push Delta shares into record territory, making it an attractive stock to buy for strength seekers.On the options trading front, calls were favored over puts ahead of the report. Activity rocketed to 505% of the average daily volume, with 93,982 total contracts traded. Calls claimed 63% of the day's take.The options board was pricing in a move of $1.99 or 3.3% after the earnings release, so this morning's 2.20% jump is well within the expected range and should bring profits to traders who sold volatility into the number. Micron (MU)The post-earnings rally in Micron reached a fever pitch yesterday with the stock ramping another 3.75% higher. And that was after the gains were pared into the bell. At the intraday peak, MU stock was up 6.4%. Ever since last month's quarterly report, institutions have been rushing back in. So says the multiplication in accumulation days revealed in the volume panel of the accompanying chart.Yesterday's boost carried MU to critical overhead resistance. The $44 zone has kept a lid on it for almost a year now, rejecting numerous rally attempts along the way. I have a feeling this time will be different. After some consolidation, that is. MU is hitting some extreme overbought readings and could use a bit of digestion before breaking out.On the options trading front, calls outpaced puts by a modest margin. Total activity ramped to 189% of the average daily volume, with 344,455 contracts traded. Calls added 59% to the session's sum.The post-earnings volatility crush ended last week, and we've since seen a mild rise to 39%. Still, the metric sits at a lowly 6th percentile of its one-year range. That means options are cheap, and long premium plays are the way to go here. Disney (DIS)Disney shares have been flirting with a breakout to new highs for weeks now. And, well, yesterday it went for it. Buoyed by the bullish backdrop of the overall market, DIS stock finally blasted through the high of last month's consolidation zone and tagged $144.25. * 7 Marijuana Penny Stocks That I May Buy We did see a mild increase in volume, but it wasn't as strong as some of the other accumulation days seen in June. Nonetheless, shareholders are cheering and eyeing $150 as the next upside target.The underlying optimism in Disney was on full display in the options market. Traders went cuckoo for call options driving total activity to 158% of the average daily volume, with 190,471 contracts traded; 85% of the trading came from call options alone.The increased demand pushed implied volatility up to 26%, placing it at the 46th percentile of its one-year range. With earnings looming less than a month from now, the high readings should persist over the coming weeks.As of this writing, Tyler Craig held bullish options positions in DIS. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Thursday's Vital Data: Delta Air Lines, Micron and Disney appeared first on InvestorPlace.
The market had been much higher at one point in the day on Wednesday, buoyed by commentary from Federal Reserve Chairman Jerome Powell who all but said a rate cut was coming, and soon. But, even with the intraday pullback, the S&P 500 ended the day up 0.45%, hitting a record high in the process.Source: Allan Ajifo via Wikimedia (Modified)Tesla (NASDAQ:TSLA) gets a little bit of extra credit for keeping the market in the black. Shares of the electric carmaker were up nearly 4% on the heels of news it was planning to ramp-up production at its Fremont, California plant. Memory chip maker Micron Technology (NASDAQ:MU) was up 4% as well after the glut-beleaguered company announced it raised a few billion by issuing some well-received notes.At the other end of the spectrum, Levi Strauss (NYSE:LEVI) tumbled 12% after the jeans company said the second half of the year wasn't looking quite as promising as first believed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies None of those picks are great prospects headed into Thursday's session though. Rather, it's the stock charts of Davita (NYSE:DVA), Honeywell International (NYSE:HON) and Advanced Micro Devices (NASDAQ:AMD) that look like your best bets, even if not all for bullish reasons. Advanced Micro Devices (AMD)Advanced Micro Devices shares, in simplest terms, are at an inflection point. Although the rally since late last year has been persistent and rewarding, for the second time in a month AMD is knocking on the doors of record highs. If the bulls fail once again, this third try may not set up a fourth attempt anytime soon. Rather, this could serve as the pivot into a more prolonged downtrend, and the backdrop is anything but encouraging. Click to Enlarge * The ceiling in question is right around $34, plotted in white on both stock charts. This is the third time since mid-2018 it has been tested. * While the advance appears to have momentum, there's a stark lack of volume behind the gain thus far. * A breakout move past the $34 area could be catalytic, but if volume doesn't materialize in a big way, it could also be nothing but a setup for an even bigger wave of profit-taking. Davita (DVA)In a perfect world a stock's trading action would always make sense, and moves -- higher or lower -- wouldn't need prodding. We don't live or trade in a perfect world though.With that as the backdrop (and perhaps with a bit of irony thrown in), this week's drubbing of Davita shares may be the very thing they needed to restart a bigger-picture rally effort that ultimately failed to follow through last week. It was news that prompted the shakeup, which isn't ideal. It's still the hand traders were dealt though. * 10 Stocks to Sell for an Economic Slowdown Click to Enlarge * As of last Friday, DVA had just pushed above its 200-day moving average line, plotted in white on both stock charts. On Monday, that move was completely up-ended, by headlines. * Tuesday's miserable opening wasn't so miserable after all. With some help from the purple 50-day moving average and even more held with a semi-established floor around $50.76, Davita logged a convincing intraday reversal pattern. * Wednesday's follow-through was key, and on above-average volume to boot. Honeywell International (HON)Finally, it's far from being in deep trouble yet, but Honeywell International shares are slowly moving in that direction. It's the pace and nature of the slowdown, in fact, that's raising so many red flags.Either, with a runup that has far outpaced the broad market's gain since the very end of last year, the sheer risk of the rollover turning into something more merits a closer look. Click to Enlarge * It's loosely evident on both stock charts, put the daily chart's purple 50-day moving average line's flattening action best shows the gradual slowdown underway. * The clincher here would be a MACD crossunder on the weekly chart. Such signals have accurately marked sizable pullbacks a couple of times since early 2018. * It may have more to do with the season than the stock, but there's been minimal volume behind the worst of the bearish days that have started this slow, arching rollover.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 3 Big Stock Charts for Thursday: Davita, Honeywell and Advanced Micro Devices appeared first on InvestorPlace.
Micron Technology, Inc. (MU) announced today that it has entered into an agreement to sell $900 million aggregate principal amount of its 4.185% Senior Notes due 2027 (the “2027 Notes”) and $850 million aggregate principal amount of its 4.663% Senior Notes due 2030 (the “2030 Notes” and, together with the 2027 Notes, the “notes”) pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the “SEC”). The offering is expected to settle on July 12, 2019, subject to customary closing conditions. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint book-running managers of the notes offering.