Micron Stock Posts Double-Digit Gains on June 26


Jun. 27 2019, Updated 9:06 a.m. ET

Micron stock rose over 13.0% on June 26

Semiconductor heavyweight Micron (MU) rose over 13.0% on June 26, to close trading at $37.04 per share. Micron reported better-than-expected third-quarter (year ending in August) results. Micron’s revenue fell 39.0% YoY to $4.79 billion, while adjusted EPS fell 67.0% YoY to $1.05. Analysts expected Micron to post revenue of $4.69 billion with EPS of $0.79 in the third quarter. Micron generated 64.0% of sales from DRAM (dynamic random access memory) and 31.0% from NAND (negative-AND).

Micron stock has been pummeled since May 3, and the stock has lost around 25.0% of its market value in the last two months. Trade war fears and falling memory prices made investors wary about Micron.

Further, during Micron’s earnings call, its management stated that it has reviewed the Huawei ban and found a subset of products that are exempt from this ban. Thus, Micron began shipments to Huawei a few days back. Micron’s stock gain yesterday means it’s now up by 16.7% year-to-date.

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Other semiconductor stocks rally

Impressive Micron earnings drove the semiconductor rally yesterday. Western Digital (WDC), NVIDIA (NVDA), and Microchip (MCHP) rose 7.3%, 5.1%, and 3.9%, respectively, yesterday.

The VanEck Vectors Semiconductor ETF (SMH) gained 3.0% on June 26. Its top holdings are Taiwan Semiconductors, Intel (INTC), Texas Instruments, and NVIDIA, which account for 12.1%, 11.8%, 5.9%, and 5.2%, respectively, of the ETF.


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