The Actual Recommended
Technology Inc Weekly Options Trade.....
** OPTION TRADE: Buy MU JAN 14 2022 95.000 CALLS at approximately $1.80.
(Actually bought for $1.84)
Technology Inc Weekly Call Options Trade
Monday, January 03, 2022
Wednesday, January 05, 2022
Total Potential Profit is 150%
Technology Inc stock continues to hover around the $93 to $ 95
mark, and will likely see the price continue
to climb in the near future.
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what other trades we are proposing!
The Original Major Catalysts for the Micron Technology Inc Weekly
counting on robust memory demand to help it deliver record revenue and solid
profitability in the current fiscal year. The company points out that memory
demand remains strong across all its end markets. For instance, in personal
computers (PCs) and graphics, Micron believes that inventory adjustments at
most customers are already done. As a result, Micron sees stable demand for
memory chips from the PC market in 2022.
management anticipates PC sales in 2022 to remain consistent with 2021 levels
and adds that more PCs are now using low-power DRAM. More specifically,
low-power DRAM accounts for 20% of the PC industry's DRAM bit demand at
present, and that number is expected to head higher in 2022 and beyond.
On the other
hand, more and more PCs are now turning to solid-state drives (SSDs) for faster
storage. Around 100 million SSDs were shipped in the first quarter of 2021 as
compared to 64 million hard-disk drives (HDDs). Technavio estimates that global
SSD sales will continue to increase in the long run, clocking an annual growth
rate of 23.6% through 2025. Given that Micron's latest generation of client
SSDs have been qualified for use by several PC original equipment manufacturers
(OEMs) and are already in volume production, it looks well-placed to capitalize
on growing SSD demand.
5G smartphones are using 50% more DRAM and double the NAND flash content as
compared to 4G smartphones, and their shipments are expected to increase 40% in
2022, it's easy to see why Micron expects a healthy demand environment to
prevail in 2022. Additionally, the increasing adoption of SSDs in data centers
is another tailwind for the memory market. Micron's data center revenue was up
70% year over year in the fiscal first quarter, and the company sees further
growth in this segment as data centers deploy more SSDs instead of hard-disk
memory demand will be Micron's biggest growth driver in 2022.
Micron Technology Inc delivered
a knockout earnings report on Monday, December 20th, that not
only resulted in a 14% weekly gain but revitalized the entire semiconductor
space. The nation’s leading memory chip company posted a 33% jump in fiscal Q1
revenue and a 59% surge in adjusted EPS thanks to strong broad-based demand for
its DRAM, NAND, and NOR chips. This prompted management to raise its full year
outlook sending Micron shares on a high volume run to within $1.17 of its
5G Smartphone Tailwind.....
revenue from the mobile business unit (MBU) increased 27% year over year to
$1.9 billion in the fiscal first quarter. The segment produced nearly a quarter
of the company's top line and was its second-largest source of revenue.
Micron Technology Inc pointed out that smartphones
nowadays are using more DRAM (dynamic random-access memory) and NAND (short for
"not and") flash memory. Management estimates that 5G smartphones are
using 50% more DRAM to enable faster processing compared to 4G devices.
Meanwhile, the amount of flash storage in 5G smartphones has doubled in
comparison to 4G smartphones.
Micron Technology Inc management anticipates that the
amount of memory and storage used in 5G smartphones will increase further
thanks to the increasing adoption of data-intensive applications, which should
create the need for more bandwidth and computing speed. Management pointed out
that smartphone applications powered by artificial intelligence, 5G wireless
technology, and emerging tech trends such as the metaverse will drive secular
growth in the memory and storage demand.
smartphones are expected to create an additional content opportunity for the
likes of Micron Technology -- but that is just one side of the coin. The sales
of 5G smartphones are also expected to grow rapidly in the coming years,
thereby creating a huge volume opportunity for memory manufacturers to tap
Micron Technology Inc estimates that 700 million 5G
smartphones could be shipped in 2022, up significantly from this year's
shipments of 500 million units. By 2025, annual 5G smartphone shipments are
expected to hit 1.5 billion units as per third-party estimates, indicating that
Micron's mobile revenue opportunity is all set to expand rapidly in the coming
Micron's mobile business could keep growing at an impressive pace for a long
time to come, especially considering its standing in the industry and the
efforts it is undertaking to capture a bigger share of the market.
low-power double data rate 5X (LPDDR5X) DRAM was recently validated by
Taiwanese chipmaker MediaTek for use with its Dimensity 9000 5G flagship
smartphone chipset. According to Micron, its LPDDR5X DRAM can deliver a peak
performance that's 33% faster than the previous generation LPDDR5 memory.
part is that Micron's validation by MediaTek could open an opportunity for the
company to increase its mobile DRAM market share. That's because MediaTek
commands a 40% share of the smartphone application processor market, according
to Counterpoint Research. One of the reasons why MediaTek dominates the
smartphone processor market is because of its 5G chips, which is a positive
sign for Micron.
All of this
indicates that Micron could keep benefiting from the 5G smartphone market in
the long run, and that could help it remain a top growth stock for a long time
As well, analysts believe that Micron Technology Inc
is witnessing growing demand for memory chips from cloud-computing providers
and acceleration in 5G (fifth-generation) cellular network adoptions. Rising
mix of high-value solutions, enhancement in customer engagement and improvement
in cost structure are growth drivers as well. Further, 5G adoption beyond
mobile is likely to spur demand for memory and storage, particularly in
(Internet of Things) devices and wireless infrastructure.
Micron Technology Inc is seeing rising demand
from the automotive and industrial markets as well. Micron's automotive revenue
was up 25% year over year in Q1 as demand for driver-assistance systems and
in-vehicle infotainment is driving the need for more memory chips.
Additionally, growing electric vehicle (EV) adoption and the automation
of cars will increase Micron's addressable market. The company points out
on its earnings conference call:
New EVs are becoming like a data center on wheels, and we are already
seeing examples of 2022-model-year EVs supporting level 3 autonomous capability
with over 140 GB of DRAM and also examples with over 1 TB of NAND.
Despite the stock’s 37% surge since the end of October, analysts are
bullish on Micron’s growth prospects. The vast majority called the stock a buy
in the wake of the Q1 report and many see at least 20% more upside. Rosenblatt
Securities is a clear outlier with a wildly optimistic $165 price target.