Micron Technology (MU, Financial), one of the world's three largest manufacturers of Dynamic Random Access Memory chips (DRAMs), sliced 109 basis points off the NAV return, as its share price sank 8.9% during the quarter from $51.52 to $46.96. (One basis point is 1/100th of one percent.) About 10% of Micron's sales normally come from Huawei, a Chinese firm that the U.S. has barred from purchasing high-end American semiconductors. While both the political environment and short-term demand remain uncertain for the time being, Micron should be able to replace the lost sales from China with increasing demand for memory chips because of 5G, the cloud and data-center growth.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) third-quarter 2020 shareholder letter.
