Micron Technology, a US chipmaker, posted strong quarterly results, sending its stock up by more than 16% in pre-market trade. The company reported a surge in profit during its third quarter to $28.2 billion – almost 15 times more than what it made during the same quarter a year ago. Revenues soared 346% over the same period.
Investor Confidence Boosted
Micron is a maker of memory semiconductor chips, a type of chip used by AI companies to run their models, which are in short supply globally. Micron said in its results that its customers had committed $22 billion to secure supplies of its chips. This news has boosted investor confidence in AI stocks, which had taken a hit earlier in the week.
The sell-off didn’t appear to be triggered by anything specific, with some market analysts pointing to worries sparked by Google and SpaceX falling sharply the previous day, while others suggested that investors had been spooked by likely forthcoming rate hikes by the Federal Reserve.
On Thursday, in the US, the tech-heavy Nasdaq and the S&P 500 were up 2.15% and 0.75% respectively in pre-market trade, while the Dow was pointing up by 0.3%. Europe’s benchmark Stoxx 600 index was up 0.6% by early afternoon local time. In Asia, Japan’s Nikkei 225 index closed up 4.6% while South Korea’s Kospi finished 5.4% higher.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
