Trends
Micron hits record high as AI demand powers strong forecast
Micron Technology shares surged Thursday, reaching US$113.50, an all-time high, based on data back to 1984, aided by a faster-than-expected recovery in the memory-chip market. Values Micron’s high-bandwidth memory (HBM) chips, which refer to ultrafast semiconductors used in the development of AI app…
Headline
Micron Technology shares surged Thursday, reaching US$113.50, an all-time high, based on data back to 1984, aided by a faster-than-expected recovery in the memory-chip market. Values Micron’s high-bandwidth memory (HBM) chips, which refer to ultrafast semiconductors used in the…
Context
Micron Technology shares surged Thursday, reaching US$113.50, an all-time high, based on data back to 1984, aided by a faster-than-expected recovery in the memory-chip market. Micron’s high-bandwidth memory (HBM) chips, which refer to ultrafast semiconductors used in the development of AI applications, were sold out for 2024.
Evidence
Pending intelligence enrichment.
Analysis
Micron, one of the two suppliers of HBM chips to Nvidia along with South Korea’s SK Hynix, was set to add nearly US$16 billion to its market value, based on its share price of US$110.92. On Wednesday ahead of results, Micron was trading at about 24 times its 12 month forward earnings estimates, compared with 14.53 for smaller rival Western Digital. Micron’s shares have surged more than 60% in the past 12 months, buoyed by investor confidence that the company will grow its share of the high-margin HBM market this year and the next. Also read: Biden to give $8.5billion to Intel to build more chip factories
Key Points
- Memory chipmaker Micron Technology surged to a record high on Thursday after its strong revenue forecast fanned optimism.
- The stock was last up 15%, lifting the broader Philadelphia chip index 3% higher.
- Soaring demand for AI hardware would take the Nvidia supplier to new peaks.
Actions
Pending intelligence enrichment.
