Why Micron Technology shares are up 4% today

Senior memory chip expert Micron Technology (NASDAQ:MU) was one of the clear winners in the tech sector on Wednesday. This was somewhat unexpected since the majority of the company’s memory chip production is in Taiwan, which was hit by a powerful earthquake the day before. But Micron’s quick reassurances about the situation, coupled with its ranking as a top stock pick by analysts, sent its shares up more than 4% in Wednesday’s trading session.

shaken but not broken

The intensity of this earthquake was 7.4, but the epicenter was located in a relatively sparsely populated area, and many safeguards and preparations were taken, so the damage and death toll were relatively low.

Regardless, Micron was quick to issue an update, assuring its business partners and investors that all of its employees were accounted for and safe. chip manufacturer It said it was “assessing the impact on our operations and supply chain,” but the fact that its personnel were unharmed suggested there was no widespread damage to its facilities.

Meanwhile, Mizuho analyst Jordan Klein tagged Micron as one of his top picks in the chip space that morning. He’s bullish on the sector overall, writing that “semi-investors tend to like and favor signs of a trough or bottom as a signal” to 2024. “

In addition to Micron, Klein’s preferred chips include Western Digital and Huirong Technology.

premature reaction

While initial reports from Taiwan and statements from Micron Technology indicate that the company has not been severely affected by the natural disaster, we do not yet know the true impact. As a result, investors’ optimistic reaction feels a bit premature; perhaps it’s best to wait for more concrete news on the situation before deciding to buy or hold the stock.

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Eric Volkman Positions holding Western Information. The Motley Fool has no position in any of the stocks mentioned. Motley Fool owned disclosure policy.

Why Micron Technology shares are up 4% today Originally published by The Motley Fool

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