The S&P 500’s top gainers on September 27, 2017, were:
Micron Technology, which is one of the leading producers of semiconductor devices like DRAM (dynamic random-access memory), flash memory, and solid-state drives, was the S&P 500’s top gainer on Wednesday. The stronger-than-expected 4Q17 earnings along with the upbeat outlook for 1Q18 increased the momentum and pushed the stock higher.
According to the report by Micron’s management, the revenue was $6.14 billion in 4Q17. The revenue was 91% higher from $3.22 billion reported in 4Q16 and higher than the market’s forecast of $5.96 billion. In 4Q17, the EPS (earnings per share) was $2.02—higher than analysts’ forecast of $1.84. Micron’s strong performance in 4Q17 pushed the stock prices to the highest levels since March 2002.
Along with its 4Q17 results, Micron’s upbeat outlook also gave the stock momentum. Micron expects the revenue in 1Q18 to be $6.1 billion–$6.5 billion, which is higher than the consensus of $6.06 billion. The EPS is expected to be $2.09–$2.23, which is higher than the consensus of $1.85. Management also announced that the average selling price of DRAM chips rose 8% in 4Q17. It expects the DRAM and NAND market to be undersupplied until the end of 2017. Amid an increase in the demand for DRAM chips in 2018 and the market’s undersupply conditions, the market’s sentiment on Micron Technology has improved.
On September 27, Micron Technology rose 8.5% and closed the day at $37.09—a gain of 8.5%.