Morgan Stanley analyst Joseph Moore recently attended the 2017 Flash Memory Summit and took place in company events, panel discussions and private events with industry insiders. Following the summit, Moore is even more convinced of Morgan Stanley’s bullish thesis on Micron Technology, Inc. MU 0.2%.
According to Moore, 3D Scaling, QLC technology in NAND and the NVM Express were key themes from this year’s event.
In the memory space, Micron management expressed confidence in the company’s 64-layer 3D NAND technology after Micron launched its first-generation 3D NAND technology just last year. Moore sees no major hurdles for Micron in ramping its 3D NAND business in the near-term. In addition, Morgan Stanley isn’t expecting any DRAM pricing weakness throughout the remainder of 2017. If anything, the firm is predicting seasonal demand growth and relatively low customer inventories, a recipe for profitable prices.
“We see significant improvement in commodity prices driven by higher capital intensity, and recovery in company-specific execution,” Moore wrote.
He said memory stocks have settled into a very well-defined earnings cycle pattern, and Morgan Stanley believes the current quarter will likely demonstrate further EPS recovery from the recent bottom in that cycle. As the recovery continues, the firm expects a return to average run rates by this time next year.
In addition to Micron, Morgan Stanley also remains…
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