Freedom: MU report triggered a sharp rally across the entire semiconductor sector

Micron Technology’s (MU) quarterly report significantly exceeded market expectations and became the main driver behind gains in semiconductor makers’ shares. As Freedom Broker analysts note, strong financial results have revived investors’ appetite for risk assets. 

Micron Technology is one of the world’s largest manufacturers of DRAM and NAND memory chips, as well as high-bandwidth memory (HBM) used in AI computing systems. The company was founded in 1978 in the United States and is among the key suppliers of components for data centers, cloud services, personal computers, smartphones, and automotive electronics.

For the third fiscal quarter, the company’s revenue reached a record $41,46 bn and increased by 346% compared with the same period last year. Net profit rose by more than 1220%, to $28,85 bn. 

After the release of the report, the MU tech sector posted gains, while Qualcomm (QCOM), Western Digital (WDC), SanDisk (SNDK), Lam Research (LRCX), KLA (KLAC), and Applied Materials (AMAT) provided additional momentum for the industry. Another confidence-boosting factor was Micron’s long-term contracts totaling about $22 bn, which make the company’s future revenue more predictable.

As Freedom Broker analysts note, long-term demand for memory for AI servers remains high, while the HBM shortage supports a strong pricing environment. Micron’s management expects positive momentum to continue in the next quarter, and experts believe favorable conditions for memory chip manufacturers could persist at least through the end of 2027.

This is not an individual investment recommendation.