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Micron Technology, Inc. (NASDAQ:MU) May Be Riding On A Falsely Inflated Demand and DRAM Price Surge

Boston, MA 10/17/2013 (wallstreetpr) – The company, in spite of a fall in the share prices recently, is still well poised to rule the market in the near future. The company is undoubtedly one of the leaders in the semi conductor market. The company has recently acquired Elpida Memory, thereby making it the second largest memory manufacturer globally, to be placed only after Samsung. However, such an acquisition has attracted hype which the company may not have deserved. This had helped Micron gain a onetime benefit in the last quarter. However, such acquisitions take time to generate the benefits desired, which is why the market kept over expecting from the company, thereby resulting in such a fall in its share prices.

Nonetheless, the company has a strong presence in the DRAM sector, thereby making it a strong point for the company. Such are used in PC and laptops, and the short supply of such is helping the company to pep up the prices of such chips. The supply bottleneck has been a result of production disruption at Hynix’s factories in China, which is expected to remain shut till the end of November 2013. Given such conditions, coupled by a near monopolistic say, the company is looking to gain the most out of such demands. However, the market seems to have factored in the fact that such a demand is temporary, and the DRAM prices shall fall once the China facility of Hynix gets back to operations. This shall result in decreased volumes as well as a reduced price for the company. Moreover, the fact that such chips are required in the manufacturing of laptops and PCs, which are already at a declining stage, has posed a bleak future for the demands of the product of Micron.

If the last quarter results were to be removed, the past seven quarters were reported to be a loss by the company.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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