Micron is a well-known American producer of computer memory, data storage devices, flash memory, and USB flash drives. DRAM products make up the majority of the company’s revenues. The demand for DRAM and NAND is set to go beyond computers and mobile phones with the advent of cloud and IoT. Additionally, there has been some consolidation lately in the sector. Such developments will favor scale players like Micron and aid future growth.
Micron Technology Company Background
Micron Technology was founded in Boise, ID in the year 1978. It initially operated as a semiconductor design consulting company. Later, Micron transitioned to wafer fabrication of DRAM chips and then progressed over the years towards becoming a specialized player in the flash memory and RAM memory segment. Micron increased the scale of its DRAM business with the acquisition of Elpida back in 2013 and Inotera towards the end of 2016. Micron’s DRAM and NAND memory products are used in data centers, PCs, game consoles, smartphones, automobiles, and other computing devices.
Micron Technology’s stock is up about 8.5% over the past 30 days having closed at $77 on 8th January 2020. The stock is up 35% for the year 2020 and up 123% since the March market crash. However, the company’s long term performance has been quite phenomenal. The stock has gone from $11 in early 2016 to $77 currently. That is a 7X return in 5 years or a CAGR of 47.5%.
Another high flying stock has been ON Semiconductor. It has gained some 15% during the past 30 days with the last traded price closing at $35 on 8th January 2020. On Semiconductor is up 42% over the past year and up about 4X since the March market fall. Incidentally, the 5-year price performance is also a 4X, as the price during the March market crash was almost the same as the price 5 years ago.