It has been a difficult year for Micron Technology (NASDAQ: MU). A slump in the memory market has knocked the wind out of the chipmaker's sales and margins in recent quarters, but things might start turning in the company's favor sooner rather than later.
The memory specialist recently got a shot in the arm as TrendForce data revealed that the price decline in the DRAM (dynamic random access memory) industry has slowed down. Fourth-quarter contract DRAM prices were down just 5% as compared to huge double-digit declines witnessed earlier this year.
What's more, TrendForce predicts that DRAM prices will decline in the low single digits once again in the first quarter of calendar 2020 and recover as the year progresses. This indicates that the sustained downturn in the memory market could be over in 2020. If that's indeed the case, now would be a good time to buy Micron stock, as it tends to do extremely well in a strong memory pricing environment.