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What Sparked The Recovery In AI Chip Stocks

Micron's stock climbed more than 16% in premarket trading after falling 13% on Tuesday during a broader AI market decline

,   and  TIPP Staff
2 min read
Photo by Igor Omilaev / Unsplash

Investor confidence in artificial intelligence stocks rebounded after U.S. chipmaker Micron Technology reported stronger-than-expected quarterly earnings, according to CNN. The results helped reverse a sharp global selloff that had rattled AI-related shares earlier this week.

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Micron said third-quarter profit surged to $28.2 billion, while revenue jumped 346% year over year. The company also disclosed that customers have committed $22 billion to secure supplies of its memory chips, which are widely used to power AI systems and remain in short supply globally.

The report said Micron's stock climbed more than 16% in premarket trading after falling 13% on Tuesday during a broader AI market decline. Analysts attributed the earlier selloff to investor concerns over lofty valuations and expectations of future Federal Reserve rate hikes.

The strong earnings boosted technology stocks worldwide. According to the report, Nasdaq and S&P 500 futures advanced, while Japan's Nikkei and South Korea's Kospi also rebounded sharply. South Korean chipmaker SK Hynix gained 13% after unveiling plans for a Nasdaq listing, further strengthening optimism around the AI sector.

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Micron Stock Rallies On Strong Earnings And Optimistic Outlook
The company reported revenue of $41.46 billion, up sharply from $9.3 billion a year earlier and well above analyst estimates of nearly $36 billion, according to LSEG data
tippinsightsTIPP Staff

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