Micron and Semiconductors Break Out - InvestingChannel

Micron and Semiconductors Break Out

In the last week, Micron Technology (NASDAQ:MU) rose 14% and closed at a high of $73.34. The memory supplier presented at the Credit Suisse brokers conference on Dec. 1. Analysts upgraded the stock afterward.

Micron presented its technology and product journey for 2021 and beyond. It will introduce leading tech nodes, differentiated solutions that support heterogeneous computing architectures, and align supply with demand. Although balancing supply and demand is not perfect, the misalignment in the past for DRAM and NAND hurt pricing and profit margins.

This time around, Micron is confident that it has an efficient research and development schedule. For example, its broad portfolio in DRAM, 3DXP, and NAND will widen its lead against the competition. As the performance and cost per bit of its products increase, customer demand will continue to grow.

Micron is not the only semiconductor stock breaking out. Qualcomm (NASDAQ:QCOM) closed at $157.62 last week on optimism of its Snapdragon 888 release for premium smartphones. This chip will support faster 5G performance.

In the PC space, AMD (NASDAQ:AMD) closed at a new high while Nvidia (NASDAQ:NVDA) faces resistance at close to $600. Still, strong PC sales will lift CPU and GPU demand in 2021. Investors should continue holding AMD and NVIDIA stock while accumulating QCOM and MU stock.