Micron Technologies’ Stock Surges by 4% in Today’s Trading

Micron Technologies’ Stock Surges by 4% in Today’s Trading

Experienced memory chip specialist Micron technology (NASDAQ:MU) was one of the big winners in the technology sector on Wednesday. This is somewhat unexpected, given that much of the company’s memory chip production is located in Taiwan, which was hit by a powerful earthquake the day before. But Micron’s quick assurance on the situation, along with being ranked a top pick by an analyst, caused its stock price to rise more than 4% during the trading session. Wednesday.

Shaken but not broken

The earthquake was violent, measuring 7.4 magnitude. Yet its epicenter in a relatively sparsely populated area, along with the many protective measures and preparations in place, helped keep the number of destruction and deaths relatively low.

Regardless, Micron was quick to issue an update reassuring its business partners and investors that all of its employees were accounted for and safe. While the chip manufacturer said it was “assessing the impact to our operations and supply chain,” the fact that its employees were OK suggests its facilities were not seriously damaged.

Meanwhile, that morning, Mizuho analyst Jordan Klein named Micron as one of his top picks in the chip segment. He is generally bullish on the sector, writing that “semi-investors tend to like and favor signs of a bottom or bottom, and that appears to be 2024.”

Besides Micron, Klein’s top chip picks are Western digital And Silicon motion technology.

A premature reaction

Although initial reports from Taiwan and Micron’s statement indicate that the company was not seriously affected by the natural disaster, we do not yet know the true impact. This bullish reaction from investors therefore seems a little premature; it may be best to wait for more concrete news on the situation before deciding whether to jump into the stock or hold on to it.

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Eric Volkman holds positions at Western Digital. The Motley Fool has no position in any of the securities mentioned. The Motley Fool has a disclosure policy.

Why Micron Technologies is up 4% today was originally published by The Motley Fool

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