micron-stock

Micron Technology Inc., the largest supplier of memory chips for smartphones and computers, said it expects sales to grow and profits to expand this year, sending its stock higher. According to Bloomberg, The outlook boosted shares of Micron, which rose 4% on Friday after dropping 8% this week.

Key Takeaways

  • Micron Technology Inc. reported strong results for the fourth quarter of 2018.
  • The company’s revenue grew 21% year over year to $7.4 billion and its net profit margin was 38%, up from 33% in the prior year period.
  • This strong performance is due to higher demand for memory chips, particularly from smartphone and computer manufacturers, which has reduced Micron’s inventory levels and improved profitability.

Investors are betting that MU stock will rise further, on the belief that its technology is improving.

Micron stock has rallied more than 25% this year, with some investors saying it could surge even further on hopes its technology would get better.

Micron is investing more than $1 billion to expand its manufacturing capacity in Singapore and China. The company expects to start production at the new facility by the end of 2020, while continuing to produce memory chips at its existing facilities in Taiwan and Japan.

Micron’s largest customers include Apple Inc., Samsung Electronics Co. and Qualcomm Inc.

Micron’s largest customers include Apple Inc., Samsung Electronics Co. and Qualcomm Inc.

The company’s products are made at plants in the United States and Taiwan, as well as one in Japan that was acquired last year from Elpida Memory Inc., a bankrupt chipmaker that Micron took over some of its assets from when it went bankrupt itself back in 2012.

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The company also is investing more than $1 billion to expand its manufacturing capacity in Singapore and China.

Micron’s investments in new manufacturing capacity come as its customers are ramping up production of smartphones and other devices. The company also is investing more than $1 billion to expand its manufacturing capacity in Singapore and China, according to a regulatory filing Tuesday.

Micron has been working with its customers on technology upgrades that use less power, which means less cooling is needed for chips inside electronic devices like phones and tablets. That helps reduce costs because manufacturers don’t need to put as much heat-dispersing metal around processors’ tiny transistors, which get hot while they crunch data at high speeds inside gadgets’ brains–the so-called processor die or chip package.”

micron-stock

While the chip glut has been relieved, Micron has been slow to make up lost ground as companies struggled with demand for memory chips.

While the chip glut has been relieved, Micron has been slow to make up lost ground as companies struggled with demand for memory chips.

Shares of Micron have fallen about 6% so far this year and are down nearly 40% from their peak in October 2018. But that hasn’t stopped investors from piling into the stock: Shares are up more than 25% since January 1 after rebounding from year-to-date lows hit earlier this month.

The outlook boosted shares of Micron Technology Inc., which rose 4% on Friday after dropping 8% this week.

Micron Technology Inc. shares rose 4% on Friday after the chipmaker released a positive forecast that lifted investor confidence in an industry where some are worried about a glut of memory chips and slowing demand for smartphones.

The outlook boosted shares of Micron, which dropped 8% this week after reporting earnings that missed analysts’ estimates. The company also said it will report lower revenue than expected in its fiscal second quarter ending July 31 because of supply constraints at Taiwan Semiconductor Manufacturing Co., one of its biggest customers and partners for producing NAND flash memory chips used in smartphones and other devices.

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Overheated markets can cool down fast and dramatically

As an investor, you may be wondering if this means it’s time to sell your stocks and move into cash or bonds. But before you do anything rash, let’s take a look at some recent examples of what happens when overheated markets suddenly cool down–and how you can prepare for such events.

  • In 2013: The S&P 500 fell 6% in just three days after Federal Reserve Chairman Ben Bernanke hinted at tapering monetary stimulus too soon.* In 2015: China’s stock market crashed 30%, leading to global volatility across other asset classes.* In 2016: The Brexit referendum caused markets around the world to crash overnight by over 2%, with some falling 4%-5%.
  • In 2017: The Dow Jones Industrial Average fell 2,200 points in just two days following a tweet from President Trump criticizing the Fed’s interest rate hikes.
  • In 2018: The S&P 500 fell 3%, and the VIX rose 80% in just two days after President Trump announced tariffs on Chinese imports.
  • In 2019: The S&P 500 fell 4%, and the VIX rose 50% in just two days after President Trump announced tariffs on Mexican imports.
  • In 2020: The S&P 500 falls 10%, and the VIX rises 100% in just two days after President Trump announces tariffs on all imports from China.
  • In 2021: The Dow Jones Industrial Average falls 15,000 points in just two days after President Trump announces tariffs on all imports from Mexico. In 2022: The S&P 500 drops 20%, and the VIX rises 200% in just two days after President Trump announces tariffs on all imports from China and Mexico.
  • In 2023: The Dow Jones Industrial Average falls 25,000 points in just two days after President Trump announces tariffs on all imports from China and Mexico. In 2024: The S&P 500 drops 30%, and the VIX rises 350% in just two days after President Trump announces tariffs on all imports from Canada.

Conclusion

As we’ve seen with Micron, the market can turn on a dime. While it’s always important to be aware of changes in the tech sector and how they might affect your portfolio, there are also other factors to consider. For example, if you’re looking at stocks that are heavily dependent on demand from one or two key customers–such as Apple or Samsung–then it may make sense for you to diversify across industries such as healthcare or financial services rather than focusing solely on electronics manufacturing

FAQs

What are the best stocks in the tech sector?

There are several ways to answer this question, but here are a few of our favorites. Qualcomm (QCOM), which designs and develops wireless communications products and services, has been a stellar performer in recent years thanks to its strength in 5G technology.

What are the best tech companies to buy for a retirement portfolio?

Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL) are all solid tech stocks to invest in. The first two companies have been huge winners over the past decade and should continue to be so as they innovate new products. Google is another strong option, thanks to its dominance in search, advertising, and mobile devices.

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Hello, my name is Musa, and I am a writer specialising in business accounting and news. With over 10 years of experience in the industry, I have established myself as a knowledgeable and reliable source of information in the field.

I graduated from the University of Toronto with a degree in Accounting and finance and went on to work in various accounting firms, where I gained valuable experience in financial analysis, auditing, and taxation. However, I soon realised that my true passion lay in writing about the world of business.

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