What occurred: Micron (MU) jumped 11% to hit all time intraday report on Tuesday.
What’s behind the transfer: Booming chip demand is driving the inventory greater. Fitch additionally upgraded reminiscence chip maker’s credit standing from BBB to BBB+ and assigned it a secure outlook.
“The improve displays Micron’s improved monetary profile following vital debt repayments over the previous 12 months,” Fitch Scores stated in a press release.
The credit standing company stated Micron can also be benefiting from surging AI-driven demand for reminiscence merchandise. That demand “is driving materially improved profitability and near-term income visibility, with prospects together with hyperscalers more and more searching for long-term provide agreements to safe devoted capability.”
What else you need to know: Shares of Micron, which manufactures reminiscence chips utilized in every part from smartphones to AI servers, have been on fireplace this yr, serving to drive the semiconductor rally as enterprise spending on infrastructure takes heart stage.
The inventory is up 122% year-to-date, and 690% over the previous yr.
Throughout their earnings calls final week, Meta (META), Microsoft (MSFT), and Apple (AAPL) all flagged rising reminiscence prices.
Ines Ferre is a senior enterprise reporter for Yahoo Finance. Comply with her on X at @ines_ferre.
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