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NEW YORK (TheStreet) – Shares of memory chip maker Micron Technology (MU) - Get Micron Technology, Inc. Report   fell on Tuesday after the company issued a disappointing outlook for its fiscal second quarter ending in February and reported revenue for its fiscal first quarter that missed estimates.

The shares were down 1% to $32.54 in early afternoon trading, rebounding from a sharper decline earlier. The drop may be an overreaction, considering Micron's strong overall first-quarter results and analysts' bullish projections.

On a slide show, Micron estimated that its second-quarter revenue will be $4.1 billion to $4.3 billion, which is below analysts' estimates of $4.53 billion, according to Thomson Reuters. It also projected a drop of high single digits to low double digits in production of DRAM chips from the first quarter and said production of its NAND chips will be flat to down in the low-single digits.

DRAM, or dynamic random access memory, chips are primarily used in personal computers, while NAND flash-memory chips are used in smartphones, tablets and digital cameras to store large digital files such as photos. Investors should note that Micron's fiscal second quarter is the company's seasonally weakest reporting period.

Meanwhile, Micron reported that gross margin for its fiscal first quarter ended on Dec. 4 rose to 36% from 33% from the previous quarter, while adjusted earnings of 97 cents a share topped analysts' estimates by 5 cents. Revenue rose 13% to $4.57 billion from a year earlier, falling short of estimates of $4.61 billion.

Analysts are bullish on Micron. Last week Ruben Roy of Piper Jaffray reiterated his overweight rating and raised his price target to $44.

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In December, Srini Sundararajan, an analyst at Summit Research Partners, reiterated his buy rating on Micron's shares and issued a 12-month target of $50. Sundararajan noted that Micron's forward price-to-earnings ratio of 8 makes the shares cheap given estimates of 15% growth in the DRAM market and 10% growth in the NAND market.

Another plus: Micron should continue to benefit from the popularity of Apple's (AAPL) - Get Apple Inc. Report products. Micron became a major Apple supplier, when it acquired Elipida, a Japanese maker of DRAM chips, in 2013.

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

"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: MU Ratings Report

This article is commentary by an independent contributor. At the time of publication, the author owned shares of Apple.