Micron Technology will maintain its leading position in memory technologies despite competitive pressures from suppliers in China, according to JPMorgan, which called that threat "overblown."
In a research note on Tuesday, the bank reiterated its overweight rating on shares of the American chipmaker.
"Many investors are concerned of potential supply from China coming on-line and disrupting overall industry supply / demand fundamentals, in our view. We believe such concerns are overblown," analyst Harlan Sur wrote in the note to clients. "We believe the technologies that are being proposed in China are likely to remain at least one or two generations behind industry leaders, likely through the rest of the decade (or longer)."
Micron shares are up 42 percent this year through Monday compared with the S&P 500's 10 percent return.