Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Micron Technology, Inc. (MU), Intel Corporation (INTC) & NXP Semiconductors NV (NXPI): Not the Best Play in the Semiconductor Industry

Page 1 of 2

Micron Technology, Inc. (NASDAQ:MU) is one of my favorite speculative tech plays, but lately I think shares may have gotten a little bit ahead of themselves. In fact, shares have ridden the recent bull market so much that shares have more than doubled over the past eight months. Having said that, I still think that this company has a bright future ahead of it, I’m just not sure that now is the best time to get in.

Micron Technology, Inc. (NASDAQ:MU)

About Micron

A leading semiconductor manufacturer, Micron Technology, Inc. (NASDAQ:MU) manufactures and markets a variety of memory products, particularly NAND Flash, DRAM, and NOR Flash memory. The company also manufactures solid state drives and other memory technologies for use in all types of electronic devices. The company sells its memory products to customers under the brand name of Lexar Media, which Micron acquired in 2006, which manufactures SD cards, memory sticks, CompactFlash cards, and readers.

Also in 2006, the company co-founded IM Flash Technologies with Intel Corporation (NASDAQ:INTC). IM Flash makes NAND flash memory products that are used in a variety of consumer electronic devices. The venture has been a success, thanks to Micron Technology, Inc. (NASDAQ:MU)’s NAND technology expertise with Intel Corporation (NASDAQ:INTC)’s expertise with Flash memory technology.

A Shaky History

Despite the success of its various product lines and joint ventures, Micron has struggled in terms of profitability over the years. Out of the past 10 years, half have resulted in operating losses for Micron, and shares have been volatile and have struggled to produce gains as a result. In fact, when you add up the company’s earnings for the past decade, it results in a collective loss of $4.84 per share for that time period.

Micron Technology, Inc. (NASDAQ:MU) is projected to report an operating loss of 43 cents per share for the current fiscal year, and then to earn $0.64 and $1.06 in 2014 and 2015, respectively. Now, if the consensus proves to be accurate, this would mean that Micron’s earnings will be growing at a tremendous rate in a couple of years, and shares would most likely command a more premium valuation as a result. However, that is a big IF, and I’m not sure that the recent doubling of the share price is justifiable, given the extreme uncertainty surrounding Micron’s ability to turn a profit. In fact, analyst estimates for the company’s 2014 earnings range from a very optimistic $1.24 per share to a low estimate of just 2 cents.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!