Micron Technology, Inc. (NASDAQ:MU) has been in a lot of news lately, with respect to its DRAM technology. Some analysts have agreed that DRAM pricing had been lower than expected in 1Q2015, but is likely to improve soon. The analysis is based on Moore’s law, “number of transistors per square inch on integrated circuits, would double each annum”. However, it is expected that Micron is the primary beneficiary of such a change.
Micron’s DRAM cost structure is expected to improve the fastest when compared to its competitors. This is because Micron uses advanced spacer-based patterning on its chips, which it states are made without extreme ultraviolet lithography. Some analysts, concentrating on semiconductors used in storage devices, stated that DRAM and NAND would be better short-term bets than any of their competitors.
DRAM pricing, however, still suffers a steep decline of around 17.6% Quarter-over-Quarter. Fortunately, the increased demand for this technology in new generation smartphones means that the supply and demand would be coming back towards balance, resulting in better pricing. DRAM is expected to hold 35% of the bits market share, compared to 27% share of PCs.
Some of the analysts had attended shareholder meetings with the company, leaving them convinced that the DRAM industry is moving towards change and MU is taking the lead. Micron has been switching its focus from PC DRAM to mobile DRAM since it has more market potential for the company. Additionally, the company also has a new face to market its products, Ernie Maddock.
Ernie has recently been appointed as the CFO of Micron Technology and he will be taking office on June 1. His last position was CFO at Riverbed Technology, where he dealt with the company’s worldwide projects and IT. Ernie has tremendous experience holding management positions in a range of different industries.
Micron Technology, Inc. (NASDAQ:MU) closed at $27.75, after gaining2.1% on May 11. The company has 1.08 billion shares being traded in the market, with a 52-week range of $25.25-$36.59.