Micron Technology’s shares are experiencing significant gains on Thursday, influenced by a positive trend in the industry and an overall bullish market momentum. As of 3 p.m. ET, the company’s stock price had increased by 5.7%. Concurrently, the S&P 500 and the Nasdaq Composite showed gains of 1.9% and 2.6%, respectively.
The rise in Micron’s valuation follows the release of robust first-quarter results from fellow memory-chip producer SK Hynix, which benefited from advancements in artificial intelligence. Additionally, positive market dynamics driven by optimistic trade prospects are contributing to the stock’s upward trajectory.
SK Hynix unveiled its first-quarter financial performance prior to the market opening, surpassing Wall Street’s expectations significantly. Despite being a competitor, SK Hynix’s recent positive business momentum is a promising indicator for Micron’s demand outlook.
In the first quarter, SK Hynix exceeded expectations for both revenue and operating income, with its high-bandwidth-memory (HBM) chips playing a major role in its success. Nvidia, which incorporates HBM solutions from both SK Hynix and Micron in its processors, reflects the strong demand environment within this category.
Micron’s stock is also benefiting from macroeconomic news. After facing substantial sell-offs due to trade concerns earlier in the month, investors are now optimistic about improvements on a broader economic scale. Despite Chinese officials’ recent comments indicating that trade negotiations with the U.S. are not currently in progress, statements from members of the Trump administration suggest that discussion on a potential deal could commence soon. Reports indicate that an agreement with India may also be nearing finalization.
With a significant portion of its production dependent on international manufacturing facilities and its sales driven by global markets, Micron is significantly affected by developments in international trade. These factors have a substantial influence on its business operations and stock performance.
