I read through this report and here are my 3 takeaways. I take what this analyst says about the technical things about computer memory devices at face value:
MU (Micron Technology Inc) has two main products right now DRAM and NAND accounting for 64% and 36% of its revenues, respectively. According to the analyst, DRAM is a highly competitive space with little room for growth, NAND is a highly competitive space but with high expectations of growing demand. Apparently computer memory generally has razor thin margins, so having either be the backbone of the company is not great, although NAND is better (according to the analyst) than DRAM. Takeaway #1. Growth in the NAND space vs DRAM space will be considered good.
MU is a small company specializing in one particular thing, so it usually needs to collaborate with other companies to create products that beat the competition. There are several small companies in the space. Samsung is a behemoth because it makes several (most?) different components. MU had a collaboration with Intel called IM technologies that was a good thing for MU, but because Intel recently launched its own memory manufacturing it is probably looking to directly compete with MU. Takeaway #2. MU needs to grow or form new collaborations.
MU does not have an "economic moat", meaning there's nothing that gives is a difficult-to-traverse competitive edge over its competitors. This makes it nearly impossible for MU to ever raise prices so that it might become more profitable. Takeaway #3. Any new initiatives into less competitive spaces will be good news for MU. Especially any market proven successes.
