Micron Technology (NASDAQ:MU) was experiencing a long bull run from the beginning of 2016 until the early this year when the stock began oscillating between a $45 support level and $60 resistance level. This year, the world leader in innovative memory solutions reached its all time high since the dot-com bubble in 2000. Some analysts expect that the price of MU will reach a certain ceiling before heading to its lowest levels again, similar to what happened during the years 2000 and 2001. Other analysts think that the technological revolution in artificial intelligence, blockchain technology and the telecommunication will provide tech and semiconductor industries more growth in the coming years. Accordingly, the price of Micron may reach new high levels.
The main question to be answered is whether current prices reflect an opportunity to secure a position in the stock at a relatively low cost for medium to long time horizon investors. Based on our analysis, and by checking its future outlook along with its financial data, Micron is currently undervalued.
The provider of semiconductor memory solutions that transform how the world uses information, experienced a long volatile bull run driven by strength in the pricing of DRAM and NAND products. However, concerns about a regulatory investigation in China in addition to the US-China trade war were putting pressure on the price and were adding more volatility to the stock.
A small note on NAND and DRAM since these two products are the key demand drivers for Micron:
- NAND is a non-volatile memory that saves memory without the need for power (storage).
- DRAM is volatile memory requiring power to save data.
Upward trend driven by a growing Market
The market for memory products is booming and it is expected to remain increasing at higher rates. In fact, our world is
