Today's Review on Micron Technology and MIPS Technologies: The Challenges of Low PC Demand
LONDON, January 23, 2013 /PRNewswire/ --
Technology sector is known for its ever changing dynamics and the swinging fortunes of its component companies. Apart from minor ripples, the sector's biggest challenge lies in its ability to withstand the current paradigm shift from PCs to mobile computing. StockCall research analysts have finished two technical reports on Micron Technology Inc. (NASDAQ: MU) and MIPS Technologies Inc. (NASDAQ: MIPS). These reports are free of charge and can be downloaded upon registration at http://www.stockcall.com/research
The shift has not only seen the likes of Apple posting astronomical returns for its investors, but also saw behemoths like HP and Intel cowering down. Though, Apple retraced some of its gains recently, but it is more of a temporary pullback than any fundamental change in the industry. PC and Mobile computing war has also impacted semiconductor sub-sector. Micron Technology is struggling with demand and supply mismatch in memory chip segment, due to fall in PC demand. Despite consolidation in the sector, memory segment is still showing oversupply and consequent fall in prices. MIPS Technologies, on the other hand, agreed to be merged with Imagination Technologies, to create a CPU IP powerhouse. Sign up today and access the free technical report on MIPS Technologies at http://www.StockCall.com/MIPS012313.pdf
Micron Consolidates its Position with Acquisition
Micron Technology Inc. [Free Technical Analysis on MU] [(1)] is one of the key players when it comes to memory products. The company is especially in solid position with regard to DRAM and NAND markets, where its main competitors are Samsung and Toshiba respectively. While Micron stock performed quite poorly in 2012, things are likely to take a better turn in 2013 as the memory market seems to have bottomed out. The market has been battered lately due to declining PC sales as PC companies formed the biggest customer category for DRAM memory products. Windows 8 is expected to revive PC market this year and may provide positive impetus for Micron Technology.
The company also scored a legal victory as Rambus Inc. was barred from demanding royalties from Micron for 12 of its patents. Micron is also diversifying its stakes as it inked a deal with Elpida. The acquisition made Micron the second biggest DRAM company in the world, right behind Samsung. While Elpida went bankrupt as it was not able to stand international competition, it will help Micron in consolidating its position. Micron's stock has not performed well for quite some time now, but it has started 2013 on solid footing. With a legal victory and an acquisition, the stock seems to be poised to benefit from the possible revival of PC market. On the other hand, Micron will also benefit from the rise of tablet and smartphone computing as these devices use mobile DRAMs.
MIPS Attracts Bidding War
MIPS Technologies stock grew more than 40% in 2012 and ended its year by becoming center of bidding war between CEVA Inc. and Imagination Technologies Group. The company deals in semiconductor designing and agreed to be bought for $60 million by Imagination. However, it received a higher bid of $75 million from CEVA Inc. After one more round of one-upping, MIPS was finally snagged by Imagination for $100 million, valuing its stock at $7.94 a piece, so at its current market price, the stock has very limited upside. The deal will be finalized in the first quarter of 2013.
- Micron Technology Inc. Technical Analysis [ http://www.StockCall.com/MIPSTechnologiesInc012313.pdf ]
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