Micron Technology’s fiscal calendar is offset from most semiconductor market participants, so yesterday’s quarterly report from the company, combined with a favorable outlook for the current period, had a beneficial effect on the part of the stock market that is related to the production of chips. Investors believed that it was too early to talk about overproduction of computing accelerators.
Image source: Micron Technology
Against this background, shares of Micron itself yesterday added almost 15% in price, increasing the company’s capitalization by more than $14 billion. Micron’s revenue for the last quarter reached record values for the past decade, and the forecast for the current one significantly exceeded analysts’ expectations. Carson Group experts interviewed by Reuters said Micron’s optimism as one of the HBM manufacturers indicates a continued upward trend in revenue for companies involved in the AI boom. Shares of Nvidia, Intel and Broadcom rose more than 2% yesterday, while gains for Qualcomm and AMD were within that limit.
Three months before the publication of Micron’s quarterly report, investors began to express concerns about the decline in prices for HBM memory and the cooling of the market for components for artificial intelligence systems, so the securities of this manufacturer fell in price by more than 20%. The company’s quarterly report and optimistic forecast for the current period should convince investors that HBM prices will not decrease and will even rise. At least Micron’s own rate of profit growth shows that this will be the case, according to experts. Accordingly, Micron’s report will have a beneficial effect on the stock price dynamics of many companies in the semiconductor sector.