Micron Technology, Inc. (MU) Seems to be on Course for an Earnings Beat: Apple Inc. (AAPL), Intel Corporation (INTC)

Outlook

Improving trends in both DRAM and NAND pricing are tailwinds which should aid Micron going forward. Moreover, the company’s aggressive investments in solid-state drives and NAND flash are another positive. Micron is on the verge of acquiring Elpida, a move which would improve its standing in the DRAM market and might as well help it land lucrative deals from the likes of Apple Inc. (NASDAQ:AAPL).

The Apple Inc. (NASDAQ:AAPL)-Samsung war has led Apple Inc. (NASDAQ:AAPL) to look to other component suppliers, and Elpida was one of the beneficiaries, winning a contract for supplying memory for the iPhone and the iPad. Apple Inc. (NASDAQ:AAPL) hadn’t exclusively used Samsung as the DRAM supplier for the latest iPhone, which means there’s opportunity for Micron to benefit from the rift between the two behemoths.

Moreover, Micron Technology, Inc. (NASDAQ:MU)’s progress in SSD’s is noteworthy. SSD sales had increased 20% in the previous quarter, and Micron is intent on churning out cutting-edge products, and a strategic partnership with the likes of Intel Corporation (NASDAQ:INTC) should help. Both companies have an agreement known as IM Flash under which they would manufacture NAND flash memory.

The partnership should result in some solid products going forward, and the signs are already emerging. For instance, Intel had released a 20nm, 240GB, solid-state drive last year, developed in association with Micron. It was the first time Intel Corporation (NASDAQ:INTC) launched an SSD with cost of storage being below $1/GB, and it won’t be surprising if the chip giant continues to get better along with Micron in its SSD venture.

The takeaway

Micron Technology, Inc. (NASDAQ:MU) has a lot going for it, but whether or not it will be able to carry forward its momentum depends on how the next earnings report turns out to be. There are some solid indicators which suggest that Micron won’t disappoint. Check back again in a week’s time to check how Micron performed, and where it’s headed going forward.

The article This Company Seems to be on Course for an Earnings Beat originally appeared on Fool.com and is written by Harsh Chauhan.

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