Why Micron Technology Is A Good Buy

Micron Technology (Nasdaq: MU ) has been plagued with falling revenue in its DRAM solutions segment for quite some time. The company's first-quarter results saw a 7.2% decline in revenue to a little over $2 billion mainly because of falling DRAM prices. However, I feel that the company could be a good bet for the long run. Why?

Let's take a closer look.

DRAMmed results
DRAM prices have been suffering for a number of years. But as of late, the DRAM industry has witnessed something that would make prices move north.

Recently, the world's third-largest DRAM memory maker, Elpida, filed the largest bankruptcy ever in the history of Japanese manufacturing. The immediate fallout of this news was a sharp speculative rise in DRAM prices. The reason for this is that if Elpida goes down, it would pull roughly 12% of the global supply for DRAM chips out of the market. This would result in reduced supply, which would in turn push prices up.