Micron Technology (NASDAQ: MU) Major Breakout Could Lead to Fast Profits

On Jan. 8, memory chip manufacturer Micron Technology (NASDAQ: MU) reported better-than-expected fiscal first-quarter 2014 earnings. As a result, the stock rallied to fresh multiyear highs, and this new found upside momentum now looks to offer traders a quick profit.

The company reported earnings per share minus items of $0.77, handsomely beating Street estimates of $0.43. It also beat on the top line with a 120% year-over-year revenue increase to $4.04 billion versus estimates of $3.72 billion.

One of the headline items that seemed to surprise investors was the 69% increase in revenue from DRAM memory chips from the previous quarter. And gross margins widened to 32% from 25% in the prior quarter. This was helped by rising DRAM prices, a trend analysts believe will continue.(more)

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