tech
Micron surges nearly 38% on week as memory chip rally goes parabolic
Micron Technology shares caught fire this week amid a global shortage of memory chips. The stock is heading for its best week since 2008.
TL;DR
- Micron Technology stock surged nearly 38% this week, its best performance since December 2008.
- The rally is attributed to a global shortage of memory chips, crucial for the AI buildout.
- Other semiconductor companies like AMD and Intel also experienced significant stock price increases.
- Demand for DRAM and NAND memory chips is high, driving up prices and margins for manufacturers.
- Hyperscalers are expected to increase capital expenditures significantly by the end of next year for AI infrastructure.
- Companies like Samsung and SK Hynix, major DRAM producers, are also seeing stock value increase, with Samsung joining the trillion-dollar valuation club.
- Micron is capturing a larger share of retail investor trading flow.