Micron Technology Stock Surges Today: Here’s Why

Micron Technology Stock Surges Today: Here’s Why

Actions of Micron technology (NASDAQ:MU) were up again on Monday as the memory chip specialist continued to rally after a strong earnings report, Barron’s considered it an AI winner, and several other AI stocks rose today, even though the market as a whole was down.

As of 12:04 p.m. ET today, Micron was up 7.8%.

Micron Technology Stock Surges Today: Here’s Why

Image source: Getty Images.

Micron rides the AI ​​wave

Micron is now up more than 23% since it reported second-quarter financial results last week that were much better than expected. It was grappling with a secular slowdown in the semiconductor sector, but last week’s report made clear the company was turning the page on those challenges, saying demand for AI and tightening the offer had accelerated its return to profitability.

Revenue jumped 58% to $5.82 billion and posted an adjusted profit of $476 million, or $0.42 per share, well ahead of a loss of $2.08 billion in the during the quarter of last year. CEO Sanjay Mehrotra said: “We believe Micron is one of the largest beneficiaries in the semiconductor industry of the multi-year opportunity presented by AI. »

What seemed to send Micron stock higher again today was a bullish endorsement from Barron’s This weekend, the newsletter called it one of the best and least appreciated long-term opportunities in the AI ​​boom.

Several other AI stocks were up today, including Super microcomputer And Arm holdsa sign that investor enthusiasm for the sector persists.

What’s next for Micron

Looking ahead to the fiscal third quarter, management expects the recovery to continue, with revenue of $6.6 billion, up 76% from last year’s quarter, and it expects gross margins to improve from 24% to 27%, compared to 18.5% in 2017. the second quarter, a positive sign.

Even though much of the spoils of the first AI boom went to Nvidiainvestors seem to realize that there will be several winners among chip stocksand Micron is shaping up to be one of them.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool Ranks and Recommends Nvidia. The Motley Fool has a disclosure policy.

Why Micron Technology stock is climbing again today was originally published by The Motley Fool

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