Micron Technologies is one of the leading manufacturers of DRAM and NAND products. Its storage and memory products are used in a wide variety of applications like automotive, smartphones, PCs, and other electronic devices. NAND and DRAM products do not have much differentiation. Therefore, competition is very stiff and average prices tend to trend downward over time. However, the industry’s three biggest players, Samsung, SK Hynix, and Micron, have avoided price wars and been disciplined with their capital expenditure plans. Therefore, with demand recovery expected to play out in the near future, there is a possibility of healthy price trends.
Micron Reports Its Q12021 Earnings Results
In early January 2021, Micron reported its first-quarter FY2021 earnings results. Revenues were up from $5.1 billion in Q12020 to $5.7 billion in Q12021. Diluted earnings per share also jumped significantly from $0.43 per share in the first quarter of 2020 to $0.71 per share in the first quarter of 2021.
Micron CEO Sanjay Mehrotra said, “We believe DRAM is past the bottom of the industry cycle and expect improving trends through calendar 2021 as the digitization of the global economy continues, fueled by artificial intelligence, cloud, 5G and the intelligent edge, including smart vehicles. Against this backdrop, Micron is poised to emerge stronger and we are excited about our future.”
Some of the best performing semiconductor stocks in the year 2020 have been Micron Technology, Broadcom Inc, ON Semiconductor Corp, and Qualcomm Inc. All of them have outperformed the NASDAQ-100 since the March market crash. Micron’s stock is up almost 10% in the last month after having closed at $77 on 8th January 2021. Micron is up 113% since the COVID-triggered market crash back in March 2020. Broadcom is also up 10% over the last month after closing on $445 on 8th January 2021. Broadcom has risen by 165% since hitting a low in March 2020.
Meanwhile, ON Semiconductor closed at $35 on 8th January 2021 and is up 15% over the preceding 30 days. ON Semiconductor is also up an incredible 320% since its trough in March 2020. Qualcomm’s stock closed at $156 on 8th January 2021. The stock is up more than 8.5% over the preceding month. Qualcomm is also up 157% since the March market fall.