Micron Technology Stock Sees Rise in Value Today
Technology

Micron Technology Rallies on AI Boom: Barron’s Recognizes its Potential as a Winner in the Industry

On Monday, Micron Technology (MU 8.34%) continued to rally after reporting strong fiscal second-quarter earnings last week. Barron’s named it an AI winner and several other AI stocks also rose, despite a lower broad market. As of 12:04 p.m. ET today, Micron was up 7.8%.

The memory chip specialist has seen significant growth since its earnings report, with revenue jumping 58% to $5.82 billion and an adjusted profit of $476 million, well above a loss in the same quarter last year. CEO Sanjay Mehrotra said that the company is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.

Micron’s stock price was driven higher again today by 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 on the rise, 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 a year ago. It sees gross margins improving by 24% to 27%, up from 18.5% in the second quarter, a positive sign for investors. While much of the early spoils of the 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 and The Motley Fool has positions in and recommends Nvidia

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