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Micron Rises Most Since 2011

Micron Technology Inc., the largest US maker of computer memory chips, posted its biggest gain in more than 12 years after giving a surprisingly strong sales forecast, buoyed by demand for artificial intelligence hardware.

Micron stock fluctuation

Bloomberg chart

Fiscal third-quarter revenue will be $6.4 billion to $6.8 billion, the company said in a statement Wednesday. That compares with an average analyst estimate of $5.99 billion. Micron will have earnings of about 45 cents a share, minus certain items. Analysts projected 24 cents.

Micron and its rivals are emerging from one of the worst slumps the memory chip industry has suffered, triggered by weak demand for personal computers and smartphones. But executives are optimistic about the future as the booming market for AI gear helps chipmakers return to growth and profitability.

The shares rose 14% to $109.85 on Thursday, marking the biggest single-day jump since Dec. 22, 2011, and a record high. The rally brought Micron’s year-to-date gain to 29%.


Image: Micron