A positive outlook on third-quarter fiscal earnings from Micron Technology didn’t do much to uplift the stocks of fellow U.S chip makers like Intel and Advanced Micro Devices.
Micron (ticker: MU) reported fiscal-quarter earnings and sales that beat Wall Street forecasts; the chipmaker went on to further stun the street by issuing a third-quarter outlook that also exceeded estimates with a visible pricing improvement across the company’s product portfolio.
According to the company, data- centre sales in the second quarter climbed more than 60% from the previous year. Analysts at Piper Sandler kept the company stock at a neutral rating, with a price target of $90. They noted the benefit the company received from strong trends in the data centre market, plus the improvements in the PC market. Piper Sandler analysts also said that Micron is benefiting from increased memory content, especially in areas like automotive and mobile.
Micron shares climbed 4.4% in premarket trading, reaching $85.67. By the end of Tuesday, though, the stock was marked as having fallen 11.9% so far in 2022.
Intel (ticker: INTC) dropped 0.3%, AMD (ticker: AMD) fell 0.2%, and Qualcomm (ticker: QCOM) had fallen 0.6%. In contrast, Applied Materials (ticker: AMAT) gained 0.3%.
Nvidia (ticker: NVDA) had declined 1% to $283.60; the stock was awarded a new Wall Street- high price target of $410 by analysts at Tigress Financial Partners on Tuesday.