Boston, MA 01/02/2013 (wallstreetpr) – The memory-chip maker Micron Technology, Inc. (NASDAQ:MU) is seemingly turning the cards in its favour. The current excitement for the company is the Hamilton’s positive outlook about the firm. Hamilton’s presented a sweet surprise for the investors after it assigned ‘buy’ to the stock and set the price target on $30. On top of this, the prices of memory cards have been constantly increasing in the last months.
SK Hynix South Korea Plan
In the last recent weeks, the stock was overlooking possible downgrade as the analysts were wary of its growth after the competitor SK Hynix came into picture. SK Hynix’s plan to manufacture new DRAM chips, which are currently much in demand due to rise in sales of mobile devices, would have impacted the Micron Technology, Inc. (NASDAQ:MU) considerably.
However, during mid-December 2013, SK Hynix announced its plans to increase DRAM production for which it will build new facility in South Korea and production is expected to begin in 2015. The new facility would involve $3.8 billion in investment and upgrade existing technology.
UpgradationAnd Alignment On Priority
Micron Technology, Inc. (NASDAQ:MU)’s Elpida deal is a full-proof about how the company is well poised to realign itself with DRAM manufacturing. Moreover, the company has also issued better guidance for FY14 forecasting $2.6 billion and $3.2 billion capex budget for July. Eventually, as the memory-chip making industry tries to strengthen the DRAM segment, it is expected that more of the manufacturers would prefer to upgrade technologies over increasing capacities.
Lately PC –DRAMS, which took the centerstage for most of the chipmakers is now fastlyloosing its sheen,while the mobile DRAMs and NANDS are replacing them. In time to comeit would be beneficial for the industry to shift focus towards DRAM segment, keeping in view that the margins are high in the segment. At this juncture, Micron Technology, Inc. (NASDAQ:MU) seems to be competitive as it has already set focs on this segment.
