Micron Technology (MU) shares soared 5.09% in pre-market trading on Tuesday, following reports that the company plans to impose a tariff-related surcharge on some of its products. This move comes in response to the recent tariff announcements by U.S. President Donald Trump.
According to sources familiar with the matter, Micron has notified its U.S. customers, including major tech companies like Apple, that it will implement a surcharge on certain products starting April 9. While semiconductors, which make up part of Micron's portfolio, were exempted from Trump's latest tariffs, the new levies do apply to memory modules and solid-state drives (SSDs).
The market's positive reaction suggests that investors view this strategy as a way for Micron to mitigate the potential negative impact of the tariffs on its bottom line. This development follows Micron's previous announcement in late March of price increases due to "un-forecasted demand" for its products. The company's ability to pass on increased costs to customers appears to be bolstering investor confidence in its financial resilience amid challenging trade conditions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.