Micron Technology, Inc. (MU): How To Play the Growing Demand for Flash Memory

Page 1 of 2

Micron Technology, Inc. (NASDAQ:MU) is a leading maker of memory products for use in a variety of electronic devices.  Although revenues are almost triple what they were ten years ago, Micron’s earnings have not reflected that (see below), and the company has actually lost money during five out of the last ten years, with a loss projected for the current fiscal year as well.  With recently declining revenues, is there a bright future on the horizon for Micron Technology, Inc. (NASDAQ:MU), or should investors just stay away?

Micron Technology, Inc. (NASDAQ:MU) produces dynamic random access memory (DRAM) and flash memory for electronic devices including computers, smartphones, and mp3 players.  The company’s general strategy is to diversify its product line, especially by developing its flash memory products.

Micron Technology, Inc. (NASDAQ:MU)The market for memory is a tough one to crack.  While the demand for memory has increased significantly every year in recent history, this is offset by the fact that memory prices have declined by an average of 20% per year.

Where the real opportunity exists for Micron Technology, Inc. (NASDAQ:MU) is in the recent emergence of handheld devices such as tablet PCs and smartphones.  An additional area is in the increasing sales of Ultrabooks (which use solid-state drives) and the increasing popularity of solid-state drives in general as prices become more competitive with traditional hard disk drives.

Also, to share in the costs of building and operating their plants, Micron has formed partnerships with some other big tech companies, most notably Intel Corporation (NASDAQ:INTC).

Intel and Micron have teamed up in a joint venture called IM Flash Technologies.  The company aims to combine Micron’s leadership in process and product technology with Intel’s history of innovation in Flash memory technology to successfully compete in the NAND Flash memory business. This venture began in 2006; however, just last year the companies announced their agreement to expand the operation.  If you believe in the emergence of new flash technologies, Intel might be a less risky way to play it, with its stable track record of earnings growth, not to mention its yield of over 4%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!