Micron Technology (NASDAQ:MU) specializes in manufacturing chips, flash memory and solid-state drives. Because they’re distracted by international politics, sometimes people forget what Micron does and how innovative the company really is. Ultimately, however, Micron stock succeeds because the company delivers best-in-class hardware.
This doesn’t mean you should disregard international tensions. At the same time, successful Micron investors will take a “This, too, shall pass” perspective and stay in the trade for best results.
Micron Has a Need for Speed
Like that old Top Gun movie from the 1980s, Micron has a “need for speed.” This is especially true for Micron’s recently unveiled SSDs, which are truly top-of-the-line.
Gamers, and anyone who uses a mini-personal computer or ultrathin laptop, should appreciate should appreciate Micron’s newly available Crucial P310 2230 Gen4 NVMe SSD. This SSD will make your head spin, with “read and write speeds of 7,100 and 6,000 megabytes per second, respectively,” and “capacities up to 2 terabytes.”
For all of you artificial intelligence junkies out there, Micron just introduced the 9550 NVMe SSD. This is, according to Micron, the “world’s fastest data center SSD and industry leader in AI workload performance and power efficiency.”
How fast is the Micron 9550 NVMe SSD? With speedy sequential data reads and writes, it provides “up to 67% better performance over similar competitive SSDs.” In other words, it’s lightning-fast by industry standards.
Be Risk-on When the Market Is Risk-off
Micron is a known revenue grower and respected tech-hardware innovator. Yet, because of the market’s nervousness, Micron stock pulled back sharply from its 52-week high of $157.54 not long ago.
Why was the market nervous? Rest assured, it wasn’t Micron’s fault. Mainly, the share-price pullback occurred because of a rotation from large-cap technology stocks to small-cap stocks.
This happened as the Biden administration considered tightening restrictions on U.S. exports of powerful tech hardware to China. Concurrently, former president and current presidential candidate Donald Trump suggested that Taiwan “did take about 100% of [America’s] chip business” and “should pay us for defense.”
If you’ve been investing for a long time, then you’ve surely witnessed political posturing and brinkmanship before. This is normal during election cycles, and so far, it hasn’t resulted in the world ending or Micron collapsing.
Mizuho Securities analyst Jordan Klein doesn’t seem to be losing sleep over international trade tensions. He considers a “pullback and risk-off trade into July earnings season” as a good thing, actually. This can “lower expectations and very elevated and euphoric investor positioning / sentiment in the semi sector.”
To put it another way, investors’ nervousness will bring volatility, and volatility will bring opportunity. So, if you still consider Micron to be a great company with outstanding products, why not go ahead and “buy the dip?”
Micron Stock: Don’t Turn Down This Valuable Gift
Micron Technology has outstanding value because the company never ceases to innovate. Indeed, Micron’s ultrafast SSDs are recent examples of the company setting new industry standards.
Hence, levelheaded investors don’t need to freak out about international trade frictions. Micron will surely survive and thrive – and whenever Micron stock gives you a dip, just buy some and then watch it rip.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
