The shares of this chipmaker were recently upgraded by B o A Securities, to ‘Buy’.
Micron Technology, Inc. (MU)
From Personal Wealth Advisor
There has been some good news in all the chaos. The technology sector is holding up reasonably well, and one notable example is Micron Technology. While it hasn’t been immune to the broader selling pressure in the market, the company’s shares have rebounded sharply after it reported last week that its adjusted earnings beat Street expectations by 24% and predicted stronger-than-expected revenue going forward.
How could that be, especially as many states and even entire countries are shutting down nonessential businesses? As businesses and schools have shut down, much of the world’s population has transitioned to working and learning remotely, while much of our commerce has transitioned online. That’s created a booming demand for cloud storage and services, boosting what had been sagging memory chip prices. That means chipmakers like Micron could fare better than initially expected.
Recommended Action: Continue buying chipmakers and semiconductor players.
Ian Wyatt and Stephen Mauzy, Personal Wealth Advisor, www.wyattresearch.com, March 31, 2020