Deep Dive on Micron

Date published: March 28, 2023

Hey Everyone!

This newsletter will dive deeply into one of our favorite semiconductor companies.

👉 What do they do?

👉 How do they make money?

👉 Key Risks

Here we go:

Keep in mind that we love any of the blue-chip semiconductors, and this is a great deal at their current value.

Stock Ticker: MU -1.57%↓

Stock Price: $59.09

52 Week High: $98.54

52 Week Low: $51.40

IPO Date: 1984

Marketcap: 65.44 Billion

Dividend: .46 (0.71%)

What does Micron do?

Micron is a semiconductor company that specializes in the memory subsector. It provides storage and memory hardware to the largest tech companies in the world.

Micron’s primary business is manufacturing and selling DRAM and NAND Flash hardware.

Dram is the computer memory used to store data quickly, while NAND Flash is high-speed storage used on modern computers and related devices.

Here is a quick overview of the products:

Micron’s DRAM products are used in:

• PCs

• Laptops

• Smartphones

• Tablets

• TVs

• Smartwatches

• Gaming consoles

• And more

NAND Flash products are used by different types of businesses, focusing on computer manufacturers and data centers.

DRAM and NAND Flash products are also sold to consumers. If you have a gaming PC, you will be familiar with the famous Micron Crucial DRAM brand, which is used in most gaming computers.

Micron has a 23% market share of DRAM sales globally, making it the third largest supplier of DRAM in the world after Samsung and SK Hynix.

They are also a significant player in NAND Flash, with an 11% global market share.

DRAM sales make up 73% of the total revenue for Micron, while NAND accounts for 26%.

The Memory Industry:

It is important to remember that Micron is a computer memory manufacturing company. This is one of the most essential parts of all the technology we use daily.

That said, Micron is one of the only “pure plays” in the computer memory space. SK Hynix and Micron are the only two stocks that focus exclusively on the computer memory industry. This makes for a small selection, limiting competition and allowing for higher profit margins.

The DRAM market has soared recently because enterprises and consumers need faster computer power and more storage. Micron has capitalized on these trends, which will only continue growing.

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