Boston, MA, 11/22/2013 (wallstreetpr) – Micron Technology Inc (NASDAQ:MU) is gaining popularity among some major hedge funds. Some of the major hedge funds who have invested in Micron are
- Baupost Group, they have a long position and hold 64 million shares worth more than $1 billion (Micron has a market capitalization of $21.03 billion). They added 22 million shares in the last quarter itself.
- Viking Global own 37 million shares
- Bridgewater Associates hold 1.99 million shares.
The company was also praised by David Einhorn during the recent Robin Hood Investors conference. He had to reverse his earlier stand and now holds a long position. His praise propelled the shares to a new high of $20.11, before closing at $19.99, a gain of 6.33% over the previous close. Though the conference was closed, his comments seem to have been leaked via tweets.
The semiconductor industry is very cyclic and there are only three major players left, with Micron Technology being one of them. The company’s acquisition of ailing chip-maker, Elpida Memory is proving to be a wise decision. A fire accident at competitor Hynix’s China operations has helped to curtail the oversupply as well as increase prices.
Elpida ensured that Micron was able to capture 22% of the market share of the mobile DRAM market. The company had a market share of just 3.4% in the second quarter. DRAM chips are used in PCs and Servers while NAND flash processors are used in mobiles and smartphones.
Micron has also been able to take advantage of the shift from personal computers to smartphones and tablets. Globally, PC sales are on a decline as they are being replaced by the more convenient smartphones and tablets. Such fast changing trends have spelt a doom for other chip makers like Qimonda and Elpida.
The stock was trading at $20.17, up by almost 1% even during after hour trade.
