Why Micron's Earnings Could Skyrocket Over the Next Year
The memory and storage manufacturing industry is an interesting one for sure. Unlike many proprietary chipmakers, memory companies produce commodity-like DRAM volatile memory, NAND flash storage, or hard disk drive storage components. The prices of these components can fluctuate with overall supply and demand, not unlike oil, silver, iron ore, or any other commodity. That can cause the earnings figures of memory companies to fluctuate wildly.
That has caused a lot of consternation among investors in Micron Technology (NASDAQ: MU), which reported its earnings on Monday, June 29. Going into earnings, there was a lot of fear that the overall economic hit from COVID-19 would cause demand to fall and memory prices along with it. However, the company delivered better-than-expected results, and also gave positive guidance for the following quarter.
Here's why that positive outlook could be just the start of things to come.
Source Fool.com
