How Far Could the Memory Uptrend Push Micron’s Stock Price?
Wall Street analysts have a consensus price target of $31 for Micron Technology (MU) stock, which it may achieve if it reports better-than-expected guidance for 3Q17.
Toshiba has a 50-50 joint venture with Western Digital (WDC) under which the companies share the R&D, capital expenditure, and operating expenses of four fabs.
Micron Technology (MU) is also allocating ~$1.1 billion on new technology and enablement of 3D XPoint, which it developed in collaboration with Intel (INTC).
In the fiscal year ended March 2016, Toshiba’s NAND business generated revenues of $7.4 billion and operating profit of $960 million.
Micron Technology’s chief financial officer, Ernie Maddock, stated that a company transitioning to 3D NAND would see negative bit growth in the first half as it puts planar capacity offline.
Micron (MU) is developing QLC, which would have four bits per cell and would be built on CMOS Under the Array architecture.
In fiscal 1H16, Micron Technology’s (MU) DRAM product mix was more inclined toward PCs, as its mobile DRAM took a little longer to qualify.
Micron Technology (MU) plans to spend ~$1.8 billion in capex on ramping up the 64-tier 3D NAND and developing the third-generation 3D NAND.
Micron Technology (MU) has achieved a 25% cost reduction by transitioning from 25nm to 20nm.
Micron Technology (MU) recently completed the acquisition of Inotera for $4 billion, which would be reflected in its fiscal 2Q17 earnings.
Micron Technology (MU) is looking to adopt Nvidia’s (NVDA) strategy of developing a standard architecture and leveraging it to build processors for various end markets.
Micron Technology (MU) entered the 3D NAND market earlier than its competitors, as its planar NAND did not deliver good returns.
Micron Technology (MU) is in the midst of an uptrend as DRAM prices increase.
Micron Technology (TU) expects to report a gross margin of 37.5% in fiscal 2Q17, which is higher than the previous guidance of 31.0%–34.0% and its fiscal 1Q17 margin of 26.0%.
In one year, Micron Technology (MU) has moved from an earnings downtrend to an earnings uptrend. During this time, Micron’s stock rose 123% to $25.80 as DRAM spot prices rose.
For decades, Intel (INTC) has based its chip advances on Moore’s Law, allowing it to design and produce faster and smaller chips.
VMware (VMW) parted with $1.3 billion three years ago to acquire Nicira, a software-defined networking company. Now, VMware is beginning to show that it made the right decision.
Politics may have been at play when Intel announced at a White House meeting that it was investing $7 billion to complete the expansion of its research and development center in Arizona.
Goldman Sachs estimates that advanced driver assistance systems and the autonomous car market will grow from $3.0 billion in 2015 to $290.0 billion in 2035.
Some tech companies have been working on self-driving programs. That has given rise to several partnerships, acquisition of start-ups, and ventures.