NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report and Intel (INTC) - Get Report today announced that they are beginning production of "3D XPoint," a chip technology that is much faster than traditional ones, Bloomberg reports.

Shares of Micron Technology are jumping by 7.01% to $19.39 on Tuesday.

Specifically, the new memory chips will be 1,000 times faster than NAND flash memory chips and 10 times faster than SSD memory chips. It will speed up the way computers access large amounts of data, Barron's.com said.

"One of the most significant hurdles in modern computing is the time it takes the processor to reach data on long-term storage," Micron President Mark Adams told Bloomberg.

Production is expected to begin at Micron's plant in Utah next year, Bloomberg added.

On Tuesday, Intel shares are also rising by 1.98% to $28.91.

Micron Technology provides semiconductor solutions worldwide. Intel designs, manufactures, and sells integrated digital technology platforms worldwide.

Separately, TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.60, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MU has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 48.66% 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 12.74% trails the industry average.
  • MICRON TECHNOLOGY INC's earnings per share declined by 38.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MICRON TECHNOLOGY INC increased its bottom line by earning $2.55 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($2.70 versus $2.55).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.6%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: MU Ratings Report