Micron Technology Rallies Again on Strong Earnings and Bullish Endorsements from Barron’s

Micron Technology Stock Sees Rise in Value Today

As the memory chip specialist, Micron Technology (MU 8.34%), continues to rally off a strong earnings report, its shares moved higher again on Monday. This was despite the broad market being lower. Micron was up 7.8% as of 12:04 p.m. ET today.

The company’s turnaround became clear last week when it reported fiscal second-quarter earnings that were much better than expected. 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 also moving higher, including Super Micro Computer and Arm Holdings, which is 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. It sees gross margins improving by 24% to 27%, up from 18.5% in the second quarter, which is a positive sign for investors who are realizing that there will be multiple winners among chip stocks and that Micron is shaping up to be one of them

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