Micron Technology Shares Surge After Earnings Report

Micron Technology's shares surged over 15% following a strong earnings report that highlighted a 93% increase in revenue, largely driven by robust demand for high-bandwidth memory chips used in AI technologies. The company's optimistic forecast for the upcoming quarter, predicting revenues between $8.5 billion and $8.9 billion, contributed to a broader rally in semiconductor stocks, uplifting shares of Nvidia, AMD, and Broadcom. Analysts noted that Micron's success has alleviated prior concerns about declining chip prices, with its gross margin projected to rise to about 39.5%. Additionally, the positive market sentiment was bolstered by Chinese President Xi Jinping's signals of economic support, as U.S. markets opened higher, with the Dow Jones up 0.6% and the S&P 500 gaining 0.7%. The rally in chip stocks extended globally, benefiting Asian manufacturers like Samsung and SK Hynix, which also reported rising share prices following Micron's announcement. Overall, the developments suggest a sustained up-cycle in semiconductor demand, particularly fueled by the AI sector.