Micron (MU) Offering Possible 32.28% Return Over the Next 24 Calendar Days

Micron's most recent trend suggests a bullish bias. One trading opportunity on Micron is a Bull Put Spread using a strike $81.50 short put and a strike $76.50 long put offers a potential 32.28% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $81.50 by expiration. The full premium credit of $1.22 would be kept by the premium seller. The risk of $3.78 would be incurred if the stock dropped below the $76.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Micron is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Micron is bullish.

The RSI indicator is at 65 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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Huawei's Honor Spinoff Unveils 5G Smartphones With Intel, Nvidia Chips
Fri, 22 Jan 2021 08:51:51 +0000
(Bloomberg) — Huawei Technologies Co.’s smartphone spinoff unveiled new devices Friday featuring chips from Intel Corp., MediaTek Inc. and Nvidia Corp., saying it reached agreements with its global partners to resume supplies cut off by U.S. sanctions on its former parent.Most of the suppliers of Honor Device Co., the budget phone brand sold by Huawei last November, have resumed doing business with the newly created company, Honor’s chief executive George Zhao said. There’s no restriction when choosing component and software suppliers, said Zhao, adding that it’s in talks with other firms including Qualcomm Inc., Advanced Micro Devices Inc., Micron Technology Inc. and Samsung Electronics Co.Huawei had hived off Honor to a Chinese government-backed consortium last year as the technology giant grappled with Trump administration sanctions that cut off its supply of mobile chipsets. The Shenzhen-based company is said to have safeguarded its core telecom equipment business by stockpiling critical components to continue supplying its home country’s 5G rollout but it lacks inventory for its smartphone business, which was once larger than Samsung’s.Honor’s latest smartphones featuring fifth-generation wireless capability use mobile chips developed by Taiwanese chipmaker MediaTek, the company announced on Friday. Its new laptop is equipped with Intel’s central processing units and a graphic processor made by Nvidia.“Based on global consumer needs, Honor has the flexibility and independence to choose the best solutions for its global supply chain,” the company said in a statement announcing its newest line-up. “Honor has already confirmed partnerships with leading suppliers such as AMD, Intel, MediaTek, Micron Technology, Microsoft, Qualcomm, Samsung, SK Hynix and Sony.”A MediaTek spokesman didn’t immediately reply to questions about whether it had entered into an agreement with Honor. Intel, Nvidia and Qualcomm didn’t immediately respond to emails from Bloomberg News seeking comments.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Micron: Set up for Further Growth
Fri, 22 Jan 2021 02:23:20 +0000
The bulls are out in full force for Micron (MU) right now. Over recent months, sentiment has changed toward the memory chip giant. Whereas only a couple of quarters ago, Micron was hampered by unfavorable macro conditions and the semiconductor industry’s cyclical nature, the company appears to be on an upwards curve. Rosneblatt analyst Hans Mosesmann has been pounding the table on Micron’s behalf for a while now. A recent fireside chat with the company’s VP of Investor Relations has only reaffirmed the analyst’s bullish conviction. “We come away from the fireside with a more optimistic view of both near-term and long-term trends as they relate to Micron,” the 5-star analyst said. “We reiterate MU as a top pick for 2021, as we see Micron's 1α DRAM and 176-layer NAND helping the company maintain a competitive position against the competition and benefit the company in F2H21 as the memory cycle continues its upswing on traditional supply/ demand dynamics.” Micron has a significant growth driver in artificial intelligence (AI), says Mosesmann, as “DRAM not only acts as a buffer to enable computing and analyze data at a fast clip, but also becomes a bigger portion of bill of materials (BOM) in new AI servers.” Furthermore, several applications which use AI such as smart cars, edge, smart photography and 5G, act as content growth drivers. Throw in the computing market’s fast pace of innovation and the increase in the number of architectures which require additional memory support, and Micron is well positioned to benefit. Product wise, AI has also substantially increased bandwidth requirements which should be good news for Micron's GDDR6X and HMB products. As far as the company’s financials are concerned, since 2016, Micron’s profitability has “significantly improved.” “The company is generating good levels of profitability at all times of the memory cycle,” Mosesmann said, “An important aspect in our opinion, while also generating excess cash.” All in all, Mosesmann reiterated a Buy rating on MU shares along with a $120 price target. Investors are looking at upside of 49%, should Mosesmann’s thesis play out over the coming months. (To watch Mosesmann’s track record, click here) Turning now to the rest of the Street, where 2 Hold ratings are swamped by 22 Buys – resulting in a Strong Buy consensus rating. MU's average price target clocks in at $98.52, implying shares will be changing hands for ~16% premium a year from now. (See Micron stock analysis on TipRanks) To find good ideas for chip stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Global Semiconductor Revenues Rebound in 2020: 5 Winners
Tue, 19 Jan 2021 12:13:12 +0000
Demand for servers and PCs following work from home is boosting sales for companies like Micron Technologies (MU) and NVIDIA Corporation (NVDA).

Is Micron Stock A Buy Right Now? Here's What IBD Charts Show
Tue, 19 Jan 2021 12:00:39 +0000
Micron Technology stock has risen recently on signs of improving memory-chip sales. Here is what the fundamentals and technical analysis say about buying MU stock right now.

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