Possibility of Micron’s acquisition by Intel
Intel and Micron are already in a DRAM (dynamic random access memory) partnership and have jointly developed 3D XPoint technology. However, the two companies are implementing this technology separately—Intel under the Optane brand and Micron under the QuantX brand.
If Intel acquires Micron, the former will get the complete benefit of 3D XPoint technology. In 2016, Intel started identifying non-volatile memory as a separate business segment, indicating its intention to grow in this market. Moreover, Micron’s memory chips are in sync with Intel’s long-term vision of the connected world.
Intel’s acquisition of Micron would be directly accretive to its earnings and make it one of the leading players in the memory space. However, it would also expose Intel to the memory market’s volatility.
If either of the above-mentioned acquisition offers materializes, Micron’s shares could increase sharply. While this is just a possibility, what is certain is strong revenue growth in its fiscal 4Q16 earnings, which are due to release on October 4, 2016.
