Micron, Intel Introduce ‘Game-Changing’ Memory: 3D XPoint

Intel Corporation (NASDAQ: INTC) and Micron Technology, Inc. (NASDAQ: MU) held a conference today to discuss the firms’ joint venture into a new class of memory they’re calling 3D XPoint. The technology represents the first new class of memory since 1989 and promises performance improvements up to 1,000 times that of NAND flash.

Intel: “Gaming-Changing Performance”

Rob Crooke, senior vice president and general manager of Intel’s Non-Volatile Memory Solutions Group, was quoted by the Street in regard to the new Intel-Micron memory solution.

“For decades, the industry has searched for ways to reduce the lag time between the processor and data to allow much faster analysis. This new class of non-volatile memory achieves this goal and brings game-changing performance to memory and storage solutions.”

The new Intel/Micron technology promises to bring improvements to a range of applications from gaming to streaming video. For example, most gaming consoles currently limit the amount of data that may be loaded into RAM to 8 GB. The new Intel/Micron 3D XPoint memory boasts the ability to load much more than 8 GB in a new location that gaming processors may then access more quickly: resulting in faster, crisper games and video.

Micron: “Revolutionary Technology”

Micron President Marc Adams was quoted about the deal with Intel.

“One of the most significant hurdles in modern computing is the time it takes the processor to reach data on long-term storage. This new class of non-volatile memory is a revolutionary technology that allows for quick access to enormous data sets and enables entirely new applications.”

Intel, Micron Shares Languish At Lows

Fundamentally, the new Intel/Micron 3D XPoint memory is the first new offering to come along in years that has the potential to put a floor in place underneath the price of Intel and Micron shares. Intel stock is down 20.3 percent on the year to date. Micron is down 44.4 percent. The stock of each has received a small bid from the announcement. Yet, both Intel and Micron sit awash in a sea of overhead supply that will take a great deal of buying power – and time – to overcome.

Intel, Micron Estimates Remain Steady: So Far

Wall Street analysts who follow Micron are forecasting the firm’s profits per share to fall by 53.7 percent this quarter, 43.3 percent next quarter and 16.10 percent this year. Analysts expect Micron to grow its EPS by an average of 15.0 percent yearly over the coming five years. Over the past 90 days, analysts’ Micron EPS estimates have remained unchanged.

Research firms who follow Intel are expecting the firm’s EPS to fall by 10.6 percent in the current quarter, 18.9 percent next quarter and 6.5 percent this year. Intel is expected to grow EPS at an average annual rate of 8.2 percent over the next five years. Analysts have decreased their views on Intel full year 2015 EPS over the past 90 days from $2.17 to $2.16. Intel revenues are forecast to fall by 1.4 percent to $55.1 billion in 2015.

Watch for revisions to Intel and Micron EPS forecasts following the 3D XPoint conference.

[Photo by Justin Sullivan / Getty Images]