The market has beaten down the semiconductor sector over the past several months, as supply chain issues strain the industry's ability to keep up with demand. With shares of the top semiconductor players undervalued, here's why Micron Technology (NASDAQ: MU) may be too cheap to ignore.
Micron makes memory chips – DRAM and NAND flash memory to be specific. These are the chips that store data in various ways, allowing computers to juggle the complex processing tasks that are handled by the "smarter" chips that actually do the computations necessary to make computers and servers run.
While Micron trails its competitors Samsung (OTC: SSNLF) and SK Hynix (OTC: HXSCL) in terms of market share, it has positioned itself as a top brand in terms of quality. Based on data from TrendForce, Micron's DRAM market share was 22.9% in Q4 2021. That's just behind the 27.2% of SK Hynix, and roughly half the 44% of market leader Samsung. Micron's DRAM chips use roughly 20% less energy than competitor chips, which gives Micron a small boost in pricing power, but more importantly makes the company's chips more environmentally friendlys. Consumers' growing push for sustainability could give Micron an additional edge in terms of market share.
Source Fool.com