'ArtM72' pid='47965' datel Wrote:Russ Fischer is a really smart guy that posts from time to time on Seeking Alpha. He was a strong proponent for MU a couple of years back on IV's OVTI board. He is now very bullish on Intel. In one of his latest posts (http://seekingalpha.com/article/2311335-...gh-margins) Russ talks about Intel and a very real possibility of its producing a DRAM on processor chip. Interesting read as it also talks a bit about MU and Samsung.
Russ is making many assumptions in that article, so it's hard to draw any real conclusions. I also see this as very unlikely, particularly for the computer / server industry, perhaps more likely in the mobile industry. Even if this does happen, it is a long way off and will not kill off the demand for standalone DRAM. This is actually a really interesting hypothesis, but it is speculation and certainly shouldn't be used to make an investment decision, anymore than any other speculation.
'ArtM72' pid='47984' datel Wrote:I see Fischer just wrote a new article for SA on MU. I'd check it out before jumping into MU at this time. http://seekingalpha.com/article/2364705-micron-maybe-it-isnt-different-this-time?isDirectRoadblock=true&app=1&uprof=
Now, on this article, I have to, respectively, highly disagree with Russ. In fact, Samsung themselves stated in their CC that this is not the case and, indeed, it would be terrible for their business to do this. Consider that DRAM is one of the only strong parts of their business, with nearly everything else in decline. By raising production and undercutting DRAM prices, they would not only kill their own profitability in one of their few remaining strong businesses, but they would help their largest competitors (i.e Apple) raise their margins, which would allow them to further compete with Samsung. I'm not sure why Russ think this is even a remote possibility, let alone suggesting it to be likely.