Micron Technology (MU 5.42%) stock is posting big gains Thursday amid a positive indicator for its industry and bullish momentum for the broader market. The company's share price was up 5.7% as of 3 p.m. ET. The S&P 500 and the Nasdaq Composite were up 1.9% and 2.6%, respectively.
Micron's valuation is jumping today after fellow memory-chip player SK Hynix posted strong first-quarter results driven by artificial intelligence (AI) tailwinds. The company's stock is also getting a substantial boost from bullish market momentum spurred by trade hopes.
SK Hynix published its first-quarter results before the market opened today, and the performance came in significantly better than Wall Street anticipated. Even though the South Korean company is a competitor, its recent business momentum is likely a bullish demand indicator for Micron.
SK Hynix significantly outperformed revenue and operating income expectations in Q1, and sales for its high-bandwidth-memory (HBM) chips were the biggest factor in the beats. Nvidia relies on both SK Hynix and Micron for HBM solutions that are included in its processors, and Hynix's results point to a strong demand backdrop in the overall category.
On the heels of big sell-offs on trade concerns earlier this month, investors are continuing to bet on improvements on the macroeconomic front this week. Despite comments from Chinese officials yesterday suggesting that no trade negotiations with the U.S. were currently underway, recent comments from Trump administration officials seem to support the idea that work on a deal could begin in the near future. Some reports also suggest that the administration is close to reaching terms for trade deal with India.
Micron relies on manufacturing facilities outside of the U.S. for a large amount of its production, and it also relies on international markets for a large portion of its sales. Accordingly, developments on the trade front could have a big impact on its business and stock performance.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。