Micron Technology Stock Sees Rise in Value Today

Micron Technology Rallies on AI Wave: Fears of Semiconductor Downturn Eased with Strong Earnings Report

The memory chip specialist Micron Technology (MU 8.34%) continued to rally on Monday after a strong earnings report last week. Barron’s deemed it an AI winner, and other AI stocks followed suit, even as the broad market was down. As of 12:04 p.m. ET today, Micron was up 7.8%.

Micron has been struggling with a secular downturn in the semiconductor sector but has since turned the page on those challenges with its latest fiscal second-quarter earnings report that exceeded expectations. Revenue jumped 58% to $5.82 billion, and it reported an adjusted profit of $476 million, or $0.42 per share, much better than a loss of $2.08 billion in the quarter a year ago. CEO Sanjay Mehrotra said that Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.

What seems to be driving Micron stock higher again today is a bullish endorsement from Barron’s over the weekend, which called it one of the best and least appreciated long-term opportunities in the AI boom. Other AI stocks such as Super Micro Computer and Arm Holdings were also moving higher, indicating investor enthusiasm for the sector is persisting.

Looking ahead to the fiscal third quarter, management expects the recovery to continue, calling for $6.6 billion in revenue, up 76% from the quarter a year ago. It sees gross margins improving by 24% to 27%, up from 18.5% in the second quarter, a positive sign

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