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.
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- Micron Technology Inc. Technical Analysis [
http://www.StockCall.com/MIPSTechnologiesInc012313.pdf ]
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