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Micron Technology Continues to Rally on Strong Fiscal Performance and AI Growth Potential

Micron Technology Stock Sees Rise in Value Today

Micron Technology Continues to Rally on Strong Fiscal Performance and AI Growth Potential

Micron Technology (MU 8.34%) reported strong fiscal second-quarter earnings last week and the memory chip specialist has been rallying off that report ever since. The stock was up 7.8% by 12:04 p.m. ET today, and it’s now up more than 23% since the earnings announcement.

Barron’s named Micron an AI winner in a recent article, and other AI stocks followed suit today, even as the broader market was lower. Revenue for Micron jumped 58% to $5.82 billion, and the company reported an adjusted profit of $476 million, or $0.42 per share – a significant improvement from a loss of $2.08 billion in the quarter before that. CEO Sanjay Mehrotra said that he believes Micron is one of the biggest beneficiaries of the multi-year opportunity enabled by AI in the semiconductor industry.

Micron’s stock seems to have been 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 were also moving higher, including Super Micro Computer and Arm Holdings, indicating investor enthusiasm for this sector is persisting.

Looking ahead to Q3, management expects recovery to continue with revenue projected at $6.6 billion – up 76% from Q3 last year – and gross margins improving by 24% to 27%. This is a positive sign for investors who are realizing that there will be multiple winners among chip stocks beyond Nvidia, and Micron is shaping up to be one of them.

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