Memory Rebound Seen Helping Micron

Memory manufacturers have been bleeding cash for years while business buyers, PC builders and enthusiasts scored memory on the cheap.

Now the situation may be changing. Prices are stabilizing, while demand remains strong for new machines and system upgrades. Meanwhile, costly capacity expansions undertaken by the memory manufacturers in years past have now concluded.

All this has one industry analyst seeing Micron benefiting at a time of the year when sales usually trail off. Coupled with a supply shortage to boost prices, the memory players could be sitting pretty — though the days of dirt-cheap DRAM may be past.

A financial analyst has raised estimates for Micron Technology, citing strength in average selling prices (ASPs) and continued procurement by OEMs and other customers and giving hope that memory makers will finally start seeing something that’s been scarce recently: profits.

Broadpoint AmTech analyst Dinesh Moorjani significantly raised his estimates for Micron’s (NYSE: MU) second fiscal quarter, which ended March 4. Moorjani raised his revenue estimates from $1.78 billion, or 2 percent sequentially from the first quarter, to $1.95 billion, or 12 percent sequentially.

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Micron Poised to Gain From Memory Rebound