Shares of US chipmaker Micron post impressive pre-market rally following optimistic quarterly outlook, thereby generating a lift in the technology sector internationally. With an increase of 17.7 percent in over-the-counter trading, Micron is heading for a record high. This positive trend also found resonance in Europe, where industry giants such as Infineon and STMicroelectronics could register gains of up to 2.9 percent.
The overall strengthening of the technology sector can also be attributed to the monetary policy signals of the US Federal Reserve (Fed), which indicates further interest rate cuts this year. Such a monetary environment is considered particularly advantageous for the interest-dependent tech industry, as lower interest rates promote investment.
Micron's Positive Quarterly Outlook Exceeds Market Expectations with Projected Revenues of 6.4 to 6.8 Billion US Dollars, Particularly Supported by the Rising Demand in the Field of Artificial Intelligence (AI). Analysts Had Anticipated Lower Revenues, Which Amplifies the Positive Surprise.
Experts such as Timothy Arcuri of Swiss Bank UBS praise Micron's strategic approach, particularly with regard to pricing and the sustainability of the current cycle. With an upgrade of the price target to 125 US dollars, Arcuri emphasizes his positive assessment of Micron, which he considers one of his top recommendations.
Micron's announcement impacts extend beyond the company itself. Other memory manufacturers like Western Digital and Seagate also saw pre-market gains. Furthermore, the investment increase expected by Micron signals positive momentum for suppliers and equipment providers in the memory and AI sector. This is reflected, among other things, in the pre-market rise in shares of the equipment manufacturer Applied Materials and the Dutch semiconductor equipment supplier ASML.
These developments highlight the increasing importance of Artificial Intelligence for the technology sector and its influence on the global financial markets. The heightened interest and investments in this area could lead to further price gains and a strengthening of the sector in the long term.
