NEW YORK (TheStreet) -- Micron Technology (MU - Get Report) was falling 4.1% to $32.56 Monday after Samsung (SSNLF) announced it will spend $14.7 billion to build a new chip plant.

Samsung will begin construction of the new plant in Pyeongtaek, South Korea in the first half of 2015, and expects construction to complete in the second half of 2017. "Our investment into the new fabrication plant will influence the shaping of Samsung's future semiconductor business," Samsung Electronics CEO Kwon Oh-hyun said in a statement.

Samsung is one of Micron's biggest competitors in the DRAM market.

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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 good cash flow from operations. We feel these 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 revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 48.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, MU's share price has jumped by 91.44%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 87.86% to $1,347.00 million when compared to the same quarter last year. In addition, MICRON TECHNOLOGY INC has also vastly surpassed the industry average cash flow growth rate of 7.45%.
  • You can view the full analysis from the report here: MU Ratings Report

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