Micron Technology (MU, Financial) added 421 basis points to the Fund’s return, as its stock climbed from $31.73 to $53.78 for a total return of 69.5%. The company makes memory semiconductors used in PCs, smartphones and data servers. Despite more supply than demand for chips last year, the stock did well due to the recovering server market, stabilizing pricing for memory chips and the industry’s efforts to limit capacity. Management has indicated that 2020 should be an inflection point with high teens growth in sales, led by demand for enterprise uses and the cloud, as well as long-term data-center demand and IOT (Internet of Things) trends.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) fourth-quarter 2019 commentary.
