Micron Technology Surges on AI Boost and Strong Earnings Report

Micron Technology Stock Sees Rise in Value Today

Micron Technology’s (MU) shares were surging once again on Monday as the company continued to rally off its strong earnings report. Despite a broader market downturn, Micron was up 7.8% by 12:04 p.m. ET, having gained more than 23% since it reported fiscal second-quarter earnings last week. The positive outlook for the semiconductor industry is a key driver of this growth, with revenue jumping 58% to $5.82 billion and an adjusted profit of $476 million reported in the quarter.

Micron has been benefiting from the multi-year opportunity enabled by artificial intelligence (AI) and CEO Sanjay Mehrotra has stated that he believes his company is one of the biggest beneficiaries in this sector. This view was echoed in a recent bullish endorsement in Barron’s, which named Micron 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 also saw gains today, indicating investor enthusiasm for this sector remains high.

Looking ahead to the fiscal third quarter, Micron expects the recovery to continue with revenue projections of $6.6 billion, up 76% from the year-ago period. Gross margins are expected to improve by 24% to 27%, up from their second-quarter levels of 18.5%. This positive outlook bodes well for investors who are realizing that there will be multiple winners among chip stocks and that Nvidia is not the only player in this space.

Jeremy Bowman has no position in any of the stocks mentioned, but it’s worth noting that The Motley Fool recommends Nvidia and has a disclosure policy that may impact investment decisions based on information presented herein.

Overall, Micron’s strong earnings report and positive outlook have propelled its stock price higher yet again today, with several other AI stocks joining it in its upward trend despite a broader market downturn.

Micron Technology’s (MU) shares were surging once again on Monday as the company continued to rally off its strong earnings report. Despite a broader market downturn, Micron was up 7.8% by 12:04 p.m. ET, having gained more than 23% since it reported fiscal second-quarter earnings last week. The positive outlook for the semiconductor industry is…

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