Micron's CEO Sees a Memory Price Rebound: Here's Why I Don't
Micron (NASDAQ: MU) CEO Sanjay Mehrotra says the price-suppressing memory chip glut of 2019 is at a turning point, and the headwind will only ease from here. As such, the next two fiscal quarters should start to show improved results.
Mehrotra may well be right about what's to come, too. The challenge to his optimism, however, is that none of the current data about DRAM or NAND pricing indicates a rebound is actually taking shape. It just indicates memory prices are settling at uncomfortably weak levels. Let's take a closer look at what all this means for the stock's immediate future.
Micron and other makers of computer memory tech like Samsung (OTC: SSNLF) and SK Hynix have grappled with falling memory chip prices since early 2018. At that time, DRAM cost more than $6 per gigabyte. Now, it costs just a bit under $3.
Source Fool.com
