Will Micron Technology (MU) Stock Be Bumped Up by New Memory Technology?
NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report announced that it created persistent memory, a new memory chip called NVDIMM that can handle big data, up to 8 GB of information.
This technology, which is commercially available, combines NAND flash reliability, DRAM performance and an optional power source into a single memory subsystem, the company said.
"Micron is delivering on the promise of persistent memory with a solution that gives system architects a new approach for designing systems with better performance, reduced energy usage and improved total cost of ownership," Micron's compute and networking business unit VP Tom Eby stated.
Potential new customers include data giants such as Oracle Corp. (ORCL), Alphabet (GOOGL) and Amazon.com (AMZN), Fortune reports.
Looking ahead, the company expects a 16 GB version to be available in the first half of 2016.
Shares of Micron Technology are falling 2.02% to $15.52 on Tuesday.
Separately, TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate MICRON TECHNOLOGY INC (MU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MU has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- 46.67% is the gross profit margin for MICRON TECHNOLOGY INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.08% trails the industry average.
- MICRON TECHNOLOGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MICRON TECHNOLOGY INC reported lower earnings of $2.46 versus $2.55 in the prior year. For the next year, the market is expecting a contraction of 45.9% in earnings ($1.33 versus $2.46).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 59.0% when compared to the same quarter one year ago, falling from $1,150.00 million to $471.00 million.
- You can view the full analysis from the report here: MU