Micron Technology, Inc. (NASDAQ:MU) Gets Analyst Mandate

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Dallas, Texas 01/01/2014 (FINANCIALSTRENDS) – Micron Technology, Inc. (NASDAQ:MU) is apparently making all the right moves. This time around, the memory-chip maker has caught the thumbs-up from Hamilton’s. On the last day of the year 2013, Hamilton’s buy with the price target on $30 has definitely revved this chipmaker stock price northwards. Besides, the prices of memory cards have been steadily increasing in the previous months.

Just last week, the stock was reeling from a downgrade as analysts mark the entry of competitor SK Hynix into manufacturing new DRAM chips would impact Micron Technology, Inc. (NASDAQ:MU). Currently, Samsung is the largest manufacturer of DRAM

DRAM is much in demand, due to increase in the number of mobile devices being sold.

In the second week of December 2013, SK Hynix put behind the fire at its fabrication facility in China, which produced the much in demand DRAM to announce that it would begin work on a new facility in South Korea and commence production by 2015. The facility would include $3.8 billion in investment and upgrade existing technology.

Chip making industry is looking to realign with DRAM manufacturing. Micron Technology, Inc. (NASDAQ:MU) is already pointed in the right direction with its Elpida deal. As the chip making industry moves towards consolidating the DRAM segment, it is expected that manufacturers may begin to upgrade their technology more than working on capacities. Micron has announced good guidance for FY14 forecasting $2.6 billion and $3.2 billion capex budget for July.

PC –DRAMS which were the mainstay for most chipmakers thus far are now dragging the industry, even as the demand for mobile DRAMs and NANDS becomes more attractive. The margins are high in this segment and the faster the industry is able to move on this front, the faster will the ROI for these chip makers.

Micron Technology, Inc. (NASDAQ:MU) has already begun to target high growth in this sector and will cut costs to improve margins.

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