Quick Win By The Algorithm: MU Reaches $43 Price Target As Predicted By I Know First Analyst

Quick Win By The Algorithm

On September 28th, 2017, I Know First issued a 1-month bullish forecast for Micron Technology, Inc. (NASDAQ: MU). The forecast showed a signal of 84.05 and a predictability of 0.62. Since then, in accordance with the forecast, MU’s stock returned 17.85%, solidifying another quick win by the I Know First algorithm.

Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. The company was founded in 1978 and is headquartered in Boise, Idaho.

 

On October 1st, I Know First Senior Analyst Motek Moyen released a bullish article on Micron Technology. He was predicting that MU could hit $42 before 2017 ends. As expected, the stock did in fact reach his target price.

The big beat on Q4 FY 2017, specifically in its EPS and revenue, fueled a bull rush for Micron. Moreover, the short supply and high prices for DRAM and NAND are favorable catalysts for its stock. These components are necessary to keep key electronic products in full production, which forces manufacturers to buy them at any given price.

Furthermore, Micron is benefiting from sales of smartphones, tablets, desktop PCs, laptops, and server racks for the datacenter industry. TechInsight’s teardown of the iPhone 8 Plus confirmed that Apple is still sourcing its mobile DRAM from Micron. Micron’s mobile DRAM business will continue to flourish as long as Apple is a customer.

Another tailwind that’s boosting Micron’s DRAM sales is the $150 billion cryptocurrency industry. Micron supplies the embedded DRAM component of GPUs (Graphics Processing Units) made by Nvidia (NVDA), which is essential to gaming, workstation, datacenter/AI GPU acceleration, and cryptocurrency mining. Like DRAM/NAND components, retail GPU products are also experiencing persistent shortages and high prices. Nvidia is likely willing to pay any price that Micron asks for its GPU DRAM to keep GeForce video cards at the optimal production rate.

Current I Know First subscribers received this bullish MU forecast on September 28th, 2017

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.