Micron Technology, Inc. (MU) Is Ready to Ride the Memory Market Higher

Samsung is the largest memory company in the world. Micron, a long-standing Samsung rival, stands to gain from Samsung’s struggle for a market share in the smartphone and tablets sector. Both companies compete in the low to medium DRAM density and other areas of the market. With the Elpida acquisition, Micron Technology, Inc. (NASDAQ:MU) will get Apple as its customer. However, Samsung and Micron collaborated in developing the Hybrid Memory Cube 1.0 project. Still, Micron lost market share to Samsung when DRAM prices fell.

Summary

One of Micron’s main strength is its resilience. It has also made progress in securing the necessary approval related to the Elpida acquisition. Its management is optimistic it will be able to close the transaction in the fourth quarter. If one adds the rising DRAM and NAND prices into the equation, Micron becomes even more attractive.

Micron Technology, Inc. (NASDAQ:MU)’s stock has not been all roses. However, its shares have been climbing in the past few months. They hit a 52-week high on June 27. I believe the stock will continue appreciating as DRAM and NAND sales rise. I think it’s time to get in on a pull back.

The article Micron Is Ready to Ride the Memory Market Higher originally appeared on Fool.com and is written by Adetokunbo Abiola.

Adetokunbo Abiola has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Adetokunbo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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