Micron Technology, a US chipmaker, 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.
Impact on AI Stocks
The company’s strong results sent its stock up by more than 16% in pre-market trade, boosting AI stocks. 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’s customers had committed $22 billion to secure supplies of its chips. The company’s stock had fallen 13% on Tuesday, part of a global sell-off of AI and AI-adjacent companies.
The sell-off didn’t appear to be triggered by anything specific. Some market analysts pointed to worries sparked by Google and SpaceX falling somewhat 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%.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
