Why Micron Technology Stock Is Climbing Again Today – The Motley Fool
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
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Shares of Micron Technology (MU -1.04%) were moving higher again on Monday as the memory chip specialist continued to rally off a strong earnings report, Barron’s deemed it an AI winner, and several other AI stocks moved higher today, even as the broad market was lower.
As of 12:04 p.m. ET today, Micron was up 7.8%.
Image source: Getty Images.
Micron is now up more than 23% since it reported fiscal second-quarter earnings last week that were much better than expected. It had been struggling with a secular downturn in the semiconductor sector, but last week’s report made it clear that the company is turning the page on those challenges as it said that AI demand and tight supply accelerated its return to profitability.
Revenue jumped 58% to $5.82 billion, and it reported an adjusted profit of $476 million, or $0.42 per share, well above a loss of $2.08 billion in the quarter a year ago. CEO Sanjay Mehrotra said, “We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
What seemed to drive Micron stock higher again today was a bullish endorsement in Barron’s over the weekend as the newsletter called it one of the best and least appreciated long-term opportunities in the AI boom.
Several other AI stocks were moving higher today, including Super Micro Computer and Arm Holdings, a sign that 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, and it sees gross margins improving by 24% to 27%, up from 18.5% in the second quarter, a positive sign.
While much of the spoils of the early AI boom have gone to Nvidia, investors seem to be realizing that there will be multiple winners among chip stocks, and Micron is shaping up to be one of them.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Shares of Micron Technology (MU -1.04%) were moving higher again on Monday as the memory chip specialist continued to rally off a strong earnings report, Barron’s deemed it an AI winner, and several other AI stocks moved higher today, even as the broad market was lower.
As of 12:04 p.m. ET today, Micron was up 7.8%.
Image source: Getty Images.
Micron is now up more than 23% since it reported fiscal second-quarter earnings last week that were much better than expected. It had been struggling with a secular downturn in the semiconductor sector, but last week’s report made it clear that the company is turning the page on those challenges as it said that AI demand and tight supply accelerated its return to profitability.
Revenue jumped 58% to $5.82 billion, and it reported an adjusted profit of $476 million, or $0.42 per share, well above a loss of $2.08 billion in the quarter a year ago. CEO Sanjay Mehrotra said, “We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
What seemed to drive Micron stock higher again today was a bullish endorsement in Barron’s over the weekend as the newsletter called it one of the best and least appreciated long-term opportunities in the AI boom.
Several other AI stocks were moving higher today, including Super Micro Computer and Arm Holdings, a sign that 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, and it sees gross margins improving by 24% to 27%, up from 18.5% in the second quarter, a positive sign.
While much of the spoils of the early AI boom have gone to Nvidia, investors seem to be realizing that there will be multiple winners among chip stocks, and Micron is shaping up to be one of them.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.
© 1995 – 2024 The Motley Fool. All rights reserved.
Market data powered by Xignite and Polygon.io.
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
