• Thu. Jun 13th, 2024

Micron Technology Surges on AI Boost: Barron’s Bullish on Memory Chip Specialist

BySamantha Johnson

Mar 25, 2024
Micron Technology Stock Sees Rise in Value Today

On Monday, Micron Technology (MU 8.34%) shares continued to rally as the memory chip specialist received a bullish endorsement in Barron’s over the weekend. The newsletter called Micron one of the best and least appreciated long-term opportunities in the AI boom, which helped drive up its stock price.

Micron has been on a strong run since it reported fiscal second-quarter earnings last week that were much better than expected. Its revenue jumped by 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 stated that he believes Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.

Several other AI stocks also moved higher today, including Super Micro Computer and Arm Holdings, 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 and gross margins improving by 24% to 27%.

The early spoils of the AI boom have gone to Nvidia; however, 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, but The Motley Fool has positions in and recommends Nvidia.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

Leave a Reply