Micron Technology falls after Morgan Stanley downgrade

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Micron Technology ($NASDAQ:MU) fell nearly 5% on Friday after investment firm Morgan Stanley downgraded the semiconductor company, citing worries over “material volume weakness in all markets.” A group of analysts led by Joseph Moore lowered Micron Technology to underweight from equal weight, but kept the $56 price target, noting that all markets, including hyperscalers, are becoming an issue. The analysts noted that Micron’s competition are also getting aggressive on product, with prices down 20% or more sequentially for hyperscale DRAM, between $100 and $105 for 32GB of RDIMMS. The price cuts are only happening if customers take “material volume” but otherwise, prices are still just below $120. Do you think this will affect MICRON TECHNOLOGY market and earnings in the long term?

Market Reaction

Following the news of the Morgan Stanley downgrade, Micron Technology’s stock has fallen. Most news coverage has been negative, with many investors worried about the company’s future. Micron Technology opened at $61.3 on Friday and closed at the same price.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on MICRON TECHNOLOGY are made simple by VI app. VI Star Chart shows that MICRON TECHNOLOGY is strong in asset, and medium in profitability, growth, dividend. MICRON TECHNOLOGY has a high health score of 8/10 with regard to its cashflows and debt, is capable to safely ride out any crisis without the risk of bankruptcy. MICRON TECHNOLOGY is classified as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. At the right price, it is suitable for those who wants to invest for moderate capital gains. Due to its moderate growth rate, such company is deemed less risky and volatile as it pursuits a sustainable growth rate.

Summary

Micron Technology, Inc. is an American producer of computer memory and computer data storage. Its principal products are dynamic random-access memory, flash memory, and solid-state drives. It is headquartered in Boise, Idaho. The company has manufacturing facilities in the United States, China, Taiwan, and Japan. Micron Technology is a leading provider of DRAM chips, which are used in a wide range of electronic devices including computers, smartphones, and servers. The company has been hurt by the weak DRAM market in recent months, with prices falling sharply due to oversupply. Morgan Stanley’s downgrade of Micron Technology reflects concerns about the company’s exposure to the weak DRAM market.