Chip manufacturer, Micron (NASDAQ:MU) dipped in pre-market trading after Reuters reported that Chinese chip maker Yangtze Memory Technologies Co (YMTC) has filed a lawsuit against the company. Yangtze has filed a lawsuit at the U.S. District Court for the Northern District of California and has alleged infringement of eight of its patents.
According to the lawsuit, Micron was using YMTC’s patented technology to increase its market share and to rise ahead of the competition but was not paying YMTC its ” fair share to use the patented inventions.”
In recent years, Micron’s share of the Chinese market has fallen from 50% in 2017 to 16% last year, after it closed its DRAM chip-making facility in Shanghai. Earlier this year, the company stated that it remained committed to China and was planning on investing $590 million over the next few years in its chip packaging plant in Xian City.
Is MU a Good Stock to Buy?
Analysts are cautiously optimistic about MU stock with a Moderate Buy consensus rating based on 18 Buys, four Holds, and one Sell. The average MU price target of $78.21 implies an upside potential of 3.8% at current levels.
