Micron’s Interesting Stocks In 2018

While Micron (MU) has gained 87% in the past year, but that doesn’t mean the best is already in the past for investors, Micron just released the news about its new GDDR6 technology to revolutionize the graphic cards memory speed. Micron Financial performance is indisputably strong, both in revenue growth and earnings. Micron is not only doing well, but also outperforming expectations by an increasingly large margin that were not expected like its trending right now. Industry cyclicality is one of the main risk factors to watch going forward. Micron is consistently reporting what is really above expectations of every one, the earnings surprise in percentage terms has consistently increased in the last four quarters in a row.

Micron (MU) has delivered impressive gains for its investors in 2017, with the stock growth as explosive as 87% in the last 12 months. While past performance is no guarantee of future success, Micron still has a lot of opportunities to attract investors. Sanjay Mehrotra, President and CEO, seems to be quite pleased with the company’s performance and the overall market performance of Micron in general during the conference call. In his own words:

“Micron’s record first quarter results demonstrated the company’s continued strong execution, a market environment that reflects the strategic importance of memory and flash storage, and healthy supply and demand fundamentals.”

The chart shows the expected earnings number, the actual reported number, the difference between the two figures, and the earnings surprise in percentage terms for Micron in the past four quarters.

The chart shows the expected earnings number, the actual reported number, the difference between the two figures, and the earnings surprise in percentage terms for Micron in the past four quarters.

Micron operates in a cyclical industry. If Demand for memory, specially recently released GDDR6 and storage chips reaches a cyclical peak and then starts declining in the middle term, this would certainly mean huge problems for Micron and its shareholders. This is an important risk factor to keep in mind analyzing a the stock. But based on what we see in highly trending demand game industry, VR industry and AI technologies and supercomputing in datacenter the chance of decline in 2018 may not be really that high in 2018.

Tags: Technology, Micron, micron stocks, stocks, gddr6 micron, micron stocks risk, micron memory technologies, micron 2018, mu, mu stocks

Mohsen Daemi
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