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Micron Technology, Inc. (NASDAQ:MU): More Hedge Funds Buy This Stock, Should You?

Boston, MA 12/11/2013 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU) is a memory chipmaker company whose market capitalization now stands at $24.34 billion. The company has confounded analysts in recent months with its beyond-expectation profits. This fiscal year has particularly been a reward season for the company and it has consequently risen from the tenth position in the global chipmakers list to the fourth position. It now trails Intel, Samsung, Qualcomm and Hynix Semiconductor.

The company’s fortunes have changed since it took over Elpida Memory Inc. this acquisition was able to double its market share and given the high prices of memory chips, it’s making good money owning to its expanded market.

The bullish nature of the semiconductor industry is also rewarding generally and this is working in favor of MU which has a lot of products to offer in the market. Moreover, the company is enjoying good profits in its business because of its higher profit margins and low expenses. In fiscal 2013, the company is set to post profits of $1.71 billion for full-year, compared to a loss of $243 million last year.

Hedge funds are seen going for positions in Micron Technology, Inc. (NASDAQ:MU). The number of hedge funds in the stock has increased by 7 percent in the third quarter to 74 funds by the end of the fourth quarter. Among the hedge funds celebrating long positions in the stock are PEAK6 Capital Management which is managed byMatthew Hulsizer. This hedge fund has invested $2.5 billion in the stock. Another institutional investor is Seth Klarman’s Baupost Group, with investment of $1.1 billion.

Other hedge funds such as Highfields Capital Management by Jonathon Jacobson and Taconic Capital, Hawkeye Capital by Frank Brosens have also been seen initiating position in the stock.

Hedge funds are important pointers to promising stocks and most investors tracking hedge funds have often outperformed the index-focused market. This being the case, investors can take up Micron Technology, Inc. (NASDAQ:MU) at this time when hedge funds are visibly bullish in the stock.

Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

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