Micron Is Sitting In The Catbird Seat

Micron Is Sitting In The Catbird Seat

Micron is sitting in the proverbial catbird seat. I have understood Micron’s presence in the mobile and server markets. However, I did not foresee its burgeoning presence in the cloud and gaming segments. The company’s cloud/enterprise customers are driving out-sized memory and storage demand. Everybody from Salesforce (CRM), to Oracle (ORCL), to Microsoft (MSFT) want to have a presence in cloud services.

Technology companies allow clients to interact with customers via mobile devices through the cloud. If more work is performed remotely then the need for memory, security and cloud infrastructure also increases. That puts Micron’s storage capability in the middle of the next wave of explosive growth in the technology space.

There is also a growing demand for graphics products. eSports are a hybrid of sport and gaming, where a team or a single player competes in tournaments across various disciplines. According to Newzoo the eSports industry was expected to generate 2017 revenue of over $100 billion, growing annually in the high single-digits. Cryptocurrency could also spur demand outside of graphics. Micron is poised to provide memory products or both eSports, cryptocurrency and the cloud. The potential upside in these markets is exciting.