Without a doubt, Micron Technology (NASDAQ:$MU) has outperformed the stock market over the past year. With the help of rapidly increasing DRAM and NAND memory chips, Micron’s revenue earnings has skyrocketed. But, does the company have other catalysts that will sustain its outstanding growth? How will Micron stock hold up after doubling in the past 12 months?

Gauging the memory market’s fortunes

On the back of a supply shortage, memory prices have been soaring. Sector leaders such as Samsung (NASDAQ:$SSNLF) and SK Hynix (NASDAQ:$HXSCL), who together have a combined market share of 90%, have re-purposed their DRAM facilities to produce server and smartphone-specific memory products. Naturally, DRAM prices from these two manufacturers surged by 30% this month, a number that will likely continue to rise.

This is also good news for Micron’s investors: Micron can continue charging a premium for its memory products. But more important, Micron is vying for ways to enter the fast-growing spaces where DRAM demand could doom. Specifically, Micron has been producing GDDR5X DRAM to graphics specialist NVIDIA for its graphics cards.

Internet of Things

Micron has also been dabbling in the Internet of Things (IoT) space through a partnership with Microsoft (NASDAQ:$MSFT). The chip-maker has teamed up with the software giant to deploy security features into IoT devices at the hardware level through its flash memory.

With Microsoft’s cloud service growing at a steady pace, the adoption of its Azure cloud service by businesses has jumped from 26%- 43%. This is good news for Micron, as it hopes to pitch its security platform to Azure’s consumer base. Further, the IoT security space is currently worth $7.8 billion and is speculated to expand at 16.5% a year until 2020.

Valuation

Micron Technology sees a trailing price to earnings ratio of a mere 14, extremely cheap in perspective to its revenue. In fact, analysts’ earnings per share speculations for the next two years have risen immensely over the past few months. Micron’s EPS over the trailing months was $2.28.

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