Micron Technology is an American technology company that specializes in making DRAM and NAND memory products. These storage and memory components are used in PCs, smartphones, automobiles, and a range of electronic devices. Micron has the third-largest market share in terms of total memory and storage product shipments after the likes of Samsung and SK Hynix. DRAM products account for roughly two-thirds of Micron’s revenue while NAND products account for the remaining one-third.
The storage and memory product industry is a cyclical one. However, there has been industry consolidation lately and most of the leading players have been quite disciplined in terms of capital expenditures. Therefore, as demand continues to recover with the fading away of the pandemic, the industry is poised for possible price increases. Investors looking at this segment of the technology industry may, therefore, find the current situation to be a favorable one for investment.
Micron Growing Stronger In Recent Times
During the recent Q12021 earnings release in early January 2021, Micron CEO Sanjay Mehrotra shared insights about how the company has been moving towards a leadership position in the industry. Mr. Mehrotra said, “From fiscal year ’16 to fiscal year ’20, we substantially improved our EBITDA margin for our combined DRAM and NAND business, while the rest of the industry in aggregate was roughly flat. And over the last few years, we have accelerated our technology roadmap in both DRAM and NAND. As a result, for the first time in our history, Micron has technology leadership in both DRAM and NAND simultaneously.”
Micron’s stock has been on an uptrend over the last month. It has gained close to 10% with its price closing at $77 on 8th January 2021. Micron is up 123% since the March market crash and has outperformed the NASDAQ 100 over the same time period. Another top performer has been Broadcom. It has also gained about 10% over the past month and 165% since hitting a low in March 2020.