This One Data Point Says Micron Isn't on the Road to Recovery Just Yet
The post-earnings spin was bullish, and understandably so. Micron Technology (NASDAQ: MU) shares soared last week following its fiscal second-quarter earnings beat, bolstered by encouraging guidance for the quarter currently underway. Apparently, the surge in at-home work created by the reaction to the coronavirus pandemic is driving new demand for computers at the same time many data centers are being forced to improve their capacity to accommodate that growth in the number of people working from home. It's a development that's taking shape at a time the computer hardware market was presumed to be coming out of a lull anyway.
If the hardware market is truly past a cyclical trough, however, there's one indicator suspiciously not aligning with the idea. That's pricing. The average price of the memory chips required to make servers and computers function remains very near multiyear lows reached late last year. Data storage prices aren't faring any better. Perhaps most alarming is that technology market research outfit IDC recently suggested server demand would be crimped this year, hitting Micron where it hurts the most.
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Source Fool.com
