Micron Technology (NASDAQ:MU) sliced 70 bps from the Fund’s performance, as its stock sank from $52.44 to $45.23 for a negative total return of 13.7%. Prices for Micron’s dynamic random-access memory chips (DRAMs) stayed flat this quarter, after rising steadily for two years. This stoked investor fears that the cycle had peaked, and this fear was magnified when management lowered their profit forecast, citing weaker PC demand, higher inventory with customers and the potential impact of the U.S.-China trade dispute. Long term, however, strong demand from datacenters and the Internet of Things (IOT) should increase sales of memory chips.
From Jerome Dodson (Trades, Portfolio)'s third-quarter 2018 Endeavor Fund shareholder letter.
