Apple Inc. (AAPL): Is Micron Technology, Inc. (MU) Destined for Greatness?

Micron recently completed the acquisition of Japanese memory-maker Elpida, for a “bargain-basement” purchase price of $2.5 billion, which will enable Micron to expand its manufacturing and sales presence in international markets. There’s a reason why the price was so cheap: Elpida filed for bankruptcy in 2012 after the price of DDR3 2-gigabit DRAM declined by almost 85%. Micron also announced plans to scut more than 1,000 jobs in an attempt to reduce its operational expenses. My Foolish colleague Selena Maranjian notes that the acquisition of Elpida might provide some lucrative opportunities to expand its memory-chip supply relationship with Apple Inc. (NASDAQ:AAPL).

Hedge fund Bridgewater Associates also increased its stake in Micron after the Elpida acquisition, on the expectation of renewed strength in memory-chip prices. However, high-debt levels, fierce competition, and the industry’s normal cyclicality may present a threat to Micron’s long-term growth prospects. Samsung is already blowing major headwinds in Micron’s direction in the smartphone arena, as its longtime frenemy Apple Inc. (NASDAQ:AAPL) continues to purchase logic processors and memory chips worth more than $10 billion from the South Korean giant each year.

Putting the pieces together
Today, Micron Technology, Inc. (NASDAQ:MU) has few of the qualities that make up a great stock; but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Micron Technology Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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