Needham & Company Sees Micron (MU) and Intel's (INTC) 3DXPoint Technology as 'Game Changing'

Needham & Company affirms Micron (Nasdaq: MU) with a Buy rating and $40 price target following introduction of a new memory technology with Intel (Nasdaq: INTC) earlier this week.

Analyst Rajvindra S. Gill noted the following key points from the announcement:

• Speed upgrade over NAND.... 3DXPoint is up to 1,000 times faster and has up to 1,000 times greater endurance than NAND. The technology's transistor-less cross point architecture creates a 3D checkerboard where memory cells sit at the intersection of word and bit lines so cells can be addressed individually. This allows data to be read and written in smaller sizes for a more efficent read/write process.
• ...with 10x density of nonvolatile memory. In addition to the significant increase in speed, 3DXPoint offers 10x the density of conventional memory in a nonvolatile form. While previous technologies have only been able to store data on just a portion of the memory cells, 3DXPoint is not electron based and changes the properties of the memory cell material itself to improve density. We are particularly encouraged by Intel and Micron's ability to create a product with a significant speed improvement over NAND and increased density over DRAM that will be able to store data even when disconnected from a power source. Given these characteristics, Micron and Intel expect the cost/bit to fall somewhere between NAND and DRAM.
• Sampling end of '15, products in '16. Intel and Micron have already begun production of 3DXPoint which will sample later this year with select customers. The companies are independently developing final products based on the technology, which are expected to be rolled out in 2016. The companies will make capital investments in the JV in Utah as needed.

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

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