Investing in Micron Technology: What to Consider
Micron Technology stock is a favourite of many investors. It is considered by some to be a calm ship in a sea of volatile tech stocks. While there is no guarantee such a trend will continue, investors cite the company’s longevity as a sign of stability and exemplary leadership. Micron is traded on the NASDAQ 100 as MU. An important side note: The NASDAQ 100 composite is a collection of the top 100 non-financial companies listed on the NASDAQ exchange. NASDAQ is often abbreviated as NDX and is comprised of companies from all over the world, and not just the United States.
WHO SHOULD INCLUDE MICRON TECHNOLOGY IN THEIR TRADE PORTFOLIO?
Tech Enthusiasts: Micron is a good place to start for traders looking to invest in tech stocks. Some of the biggest profiteers on Wall Street over the last decade invested in tech.
Day traders: In general, stocks can be great for anyone searching for potential short-term gain. Micron is no exception to this rule.
Diversifiers: Anyone without tech stocks in their portfolio should pay attention to Micron. Diversification is considered by many investment experts to be a key for long-term success.
WHAT DRIVES MICRON TECHNOLOGY’S STOCK PRICE?
MU stock price can be heavily influenced by financial and political issues. Below are several that traders should always take into consideration.
Currency fluctuations: Can have serious ramifications on stock value. For example, if the value of the dollar declines, it would be cheaper for someone paying euros to purchase a product made by Micron. Conversely, a rising dollar can make the product more expensive for consumers, resulting in a reduction in total sales. This in turn can reduce the company’s overall profits.
Profit and Loss: It is always recommended to track the profit and loss of a company when considering whether or not to trade its stocks. While this is certainly not the only factor, it is widely considered to be important.
Market volatility. IT stocks are extremely dynamic and can be more volatile than other sectors in the market. The most popular example is arguably the demise of Nokia. The Finnish telecom giant was once the largest cellphone manufacturer in the world. But the rise of Apple and Android changed the landscape almost overnight. Nokia is now just a fraction of the size it was previously. It has never recovered.
MICRON TECHNOLOGY: A TECH LEADER
Micron Technology is an American semiconductor company, known as MU on the NASDAQ. It is one of the largest manufacturers of DRAM, Flash Memory and SSD producers in the world. It was founded decades before the IT boom in the United States and is a favourite among many investors who believe in the company’s storied tradition of excellence and stability. It uses the brand names of Crucial and Ballistix to market its products to the public.
Micron has numerous subsidies, including Inotera, IM Flash Technologies, Micron Semiconductor Products Inc., Micron Semiconductor Asia and many more. This far-reaching company many not be as familiar to most when compared to the likes of Google and Apple, but it is a dominant force in the IT sector, warranting consideration as a part of any trader’s portfolio. The company also has a subsidiary called Micron Ventures that it uses to capitalise on cutting-edge technology by investing in startups at an early stage.
HISTORY OF MICRON TECHNOLOGY
Founded back in 1978, Micron Technology has become a leader in semiconductor products, employing over 30,000 people and amassing billions of dollars. Micron is not located in San Francisco or Seattle. Rather, the company is situated in the unlikely Boise, Idaho. Far removed from the American centres of business, the company has nonetheless managed to thrive, topping 5 billion dollars in net profit in 2017. In 2005, Micron teamed with Intel to produce new flash technology. Their efforts were successful, prompting the companies to join forces once again in 2011.
Micron was first listed on the Fortune 500 in the year 1992. It has since managed to purchase part of Texas Instruments in 1998, part of Toshiba in 2002 and be ranked a number one employer in the United States in 2015. An impressive resume for a company that started from very humble roots. Micron is extremely active in STEM-based charities, encouraging programmes that promote math, engineering and science.
The company has numerous production facilities located around the world, including Singapore, Japan, China, Taiwan, Virginia and Utah.
CONCLUSION: MICRON IS STILL IMPORTANT
Many investors and technology experts fawn over the major players in the IT sector. MU stock is sometimes overlooked by many, as it doesn’t enjoy the brand power of Apple or the e-commerce dominance of Amazon. However, overlooking stable B2B focused tech stocks is not recommended. With a proven track record spanning decades, it has become a household name for many investors.
*This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
*Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.