Micron bounces as analysts come out in support

Micron bounces as analysts come out in support

Technology News

Micron bounces as analysts come out in support

Micron bounces as analysts come out in support

 

Micron premarket as analysts suggest the China news is just a blip and may even help spark DRAM pricing, thus possibly prompting a positive short-term effect.

MU plunged 5.5% on Tuesday after a Chinese court issued a preliminary injunction temporarily blocking the company from selling 26 DRAM and NAND related items in the country.

"We find it almost laughable that UMC and Fujian are suing Micron for IP theft," says Evercore ISI's C.J. Muse, adding that the lawsuits ask for a total of ~$56M, "not even close" to MU's $10B-plus sales into China.

"Our sense is the magnitude of financial impact to Micron is much less than what the market is discounting and therefore fully reflected in today's share price," Muse writes, but "clarity on this front could take some time."

Stifel analyst Kevin Cassidy says China's move could pose a buying opportunity, saying the lack of details of the injunction suggests China's goal may be to push MU toward partnering with China semiconductor foundries.

"Based on our understanding of court proceedings in China, we think a settlement may be likely," J.P. Morgan analysts say, but MU is "being dragged front and center into the China-U.S. trade dispute as a potential bargaining chip and this could cause near-term volatility in the stock."

JADIRI GAMER

Jadiri Gamer "THE MORE YOU KNOW" Gamers Entertaining Gamers
Fandomfare Gaming Entertainment no.1 source in, Gaming news, Live Game Streaming , PC Gaming & related Events E3, Gamecon and more, eSports event news and releases gaming technologies.

Fandomfare Gaming Entertainment Video Games | Game Reviews | Game Streaming |Linux Distribution | more than 20-year online gaming and following the gaming industry\

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.