Micron's Downturn Isn't Over Yet
Shares of memory chip manufacturer Micron Technology (NASDAQ: MU) have surged in recent months, up about 30% since bottoming out in late June. A spike in spot prices for dynamic random-access memory (DRAM) has sparked hopes that the downturn in the memory chip market is nearing its end.
But the light at the end of the tunnel may be further away than it appears. Inventory levels at memory chip producers are still high, and contract prices for DRAM chips remain in a downtrend in the third quarter, according to DRAMeXchange. The bottom for Micron may still be multiple quarters away.
Image source: Micron.
Source Fool.com
