Benzinga - by Anusuya Lahiri, Benzinga Editor.
Micron Technology, Inc (NASDAQ: MU) stock is trading higher Friday, even with the U.S. on Thursday announcing a survey set for January 2024.
This survey, conducted by the Bureau of Industry and Security (BIS) under the Commerce Department, aims to scrutinize the U.S. semiconductor supply chain and national defense industrial base.
Its focus is evaluating and reinforcing the semiconductor supply chain, particularly addressing security concerns related to using and sourcing legacy chips manufactured in the People's Republic of China (PRC) in vital U.S. industry supply chains.
China has been a critical market for Micron, with China's commerce minister reportedly inviting the chip designer to fortify Micron's foothold in the Chinese market.
Also Read: Micron Technology to Forge with Advanced AI Chips in Taiwan and Japan
The chip designer also released its first-quarter earnings this week.
Micron reported first-quarter revenue of $4.73 billion, above the consensus of $4.64 billion. The company reported an EPS loss of $(0.95), beating the consensus of $(0.97).
Analysts bumped up their price targets on the stock following upbeat second-quarter guidance. Micron expects second-quarter revenue of $5.1 billion -$5.5 billion versus estimates of $5.03 billion.
The company expects an adjusted loss of $(0.21) - $(0.35) versus loss estimates of $(0.62).
Micron's CEO Sanjay Mehrotra flagged the generative AI boom as the driving force behind the company's robust guidance.
UBS analyst Timothy Arcuri flagged Micron as a top pick, remaining overweight on the semiconductor industry as inventory peaked and started converting to revenue per the analyst.
The stock has gained 72% year-to-date.
Price Action: MU shares traded higher by 1.88% at $87.09 on the last check Friday.
Also Read: Micron Faces Legal Battle and Revenue Dip as US-China Tensions Escalate
Photo via Wikimedia Commons
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