Despite a 61.7 percent selloff in the past year, Redstone analyst Jagadish Iyer believes Micron Technology, Inc. MU 2% is still facing some stiff headwinds. Micron’s most recent quarterly earnings report included weak revenue on a 9.0 percent quarter-over-quarter decline in DRAM, a 10.0 percent quarter-over-quarter decline in pricing and a 1.0 percent uptick in cost.

The end result of all these factors was a 8.0 percent decline in DRAM gross margins, which fell to 21 percent. Since DRAM accounts for more than half of Micron’s total revenue, the company’s overall gross margins also fell 5.6 percent to 19.7 percent.

Unfortunately for Micron shareholders, Iyer doesn’t see any relief from the challenging DRAM environment coming any time soon. He believes that Micron can’t afford to cut its $1.2 billion capex in the Feb quarter as it ramps up its 20nm DRAM and 3D NAND initiatives.

“We think…

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