Riding high on stellar revenue figures and a favorable outlook, Micron Technology (MU) saw its shares spike on Thursday, triggering a ripple effect that sent other semiconductor stocks, including Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing Company (TSM), on an upward trajectory. The impressive rally was largely observed in the tech-dominated Nasdaq.
The positive trend among chip companies is due to soaring revenue and stock prices, driven by a surge in the demand for infrastructure supporting artificial intelligence (AI). Micron Technology, under the leadership of CEO Sanjay Mehrotra, recently posted fiscal fourth-quarter sales that nearly doubled from the previous year, reaching up to $7.75 billion, thanks to robust AI demand.
Moreover, Mehrotra forecasted the growth train isn't about to stop anytime soon. He anticipated that the company’s sales could scale to a record high of between $8.5 billion to $8.9 billion in the current quarter.
As of September 26, 2024, updates indicate continued upward momentum in these share prices.