Micron Technology Inc (NASDAQ: MU) is one of the world’s leaders in DRAM and NAND memory chips. These are the chips that power almost all our portable devices and have allowed the mobile era to grow so quickly.

But this is a cyclical industry and after a couple of very strong years, the expectation is that oversupply, tight margins and older technology all start to eat into the upside the downward cycle begins.

There have been arguments that this time around was different for a number of reasons.

Primarily, as everything becomes “smarter,” it has meant that demand for chips has expanded into markets that never existed before. For example, smart homes now have lights and appliances and other features that “talk” to one another across various networks.

Cars are now smarter, helping drivers park and drive. And the implications haven’t even touched upon technologies like virtual reality and augmented reality capabilities in and beyond gaming.

The point is, the long-term future for this new mobile world we’re building — also don’t forget that 5G mobile technology is just starting to be deployed — is just beginning.

And it’s companies like MU that are leading the way.

However, there were murmurings about a slowdown in chip demand as far back as August. And in September, MU reported that chipset sales were strong but it was looking like the final quarter of the year was going to be weaker than expected.

After that, the trade war with China heated up, which also started to concern analysts. Then Apple (NASDAQ:AAPL) announced that it seemed like people were keeping their phones longer and its new phones weren’t selling as anticipated.

Now, as we get closer to earnings, it’s still a somewhat messy picture for chipmakers.

But the messy picture is only short term.

Micron isn’t going out of business. MU stock is only off 11% year to date and is trading at a P/E of 3. The technology trends are in place and will continue to be a significant engine of growth for years to come. The global economy is doing all right.

There have been a number of factors that have hurt chip stocks, particularly MU, in the past quarter, but this isn’t the end of the world.

On the other hand, that isn’t to say that 2019 is going to be a gangbuster year for MU. The company is stating that its earnings will likely be on the low end of its estimates. Some analysts are expecting that it will end up lower and then guide lower for the next quarter as well.

But much of this has already been priced into the stock.

Bottom Line on MU Stock

My Portfolio Grader rates MU as a “C” right now, or a hold. And that’s about right. Considering the volatility of the markets and the on-again-off-again nature of the U.S.-China trade talks, it’s hard to price in every possibility. It’s also likely that it will take more than a less-than-terrible quarter to turn the stock around.

That said, there’s a lot of long-term potential here when the time is right.

Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.