#5 - Micron (NASDAQ:MU)
Another tech stock to consider amidst the global chip shortage is Micron (NASDAQ:MU). The company is one of the world’s top producers of NAND chips (i.e. flash memory chips) and DRAM chips. Micron saw its revenue drop by 8% in fiscal 2020 as a result of a drop in the price of memory and other pandemic-related factors in other sectors.
However as the saying goes, that was then. 2021 has been a much better story for Micron. Memory prices are up as demand is increasing in virtually every major customer base. Revenue is up 21% and earnings are up 43%. And the catalysts for that growth such as 5G upgrades, new gaming consoles, and remote work will remain in place. In fact, recent reports of new Covid-19 outbreaks in Asia may curtail the supply of DRAM chips into 2022. That will be a catalyst for the stock moving further.
Micron is reviewed by 34 analysts and receives a consensus buy including a rare Strong Buy rating. And the price target of over $107 per share would be a gain of over 32% from the current MU stock price.
About Micron Technology
Micron Technology, Inc designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.
Read More - Current Price
- $102.92
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 26 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $143.04 (39.0% Upside)
