Why Micron Stock Is Up Today
Micron is bouncing back after Thursday’s chip rout, but the reason it fell- a possible slowdown in data center construction- hasn’t gone away.
Micron Technology's stock (MU +4.92%) surged today, up 4.1% by 2:14 p.m. ET on Friday, Nov. 6, as chip stocks rebounded following a challenging Thursday. The broader market, including the S&P 500 (^GSPC +0.72%) and Nasdaq Composite (^IXIC +1.43%), saw gains of 0.5% and 1.1%, respectively. Thursday marked the market's worst day since April 2025, with the Nasdaq plummeting 5.5%.
Micron faced a particularly tough day, with its stock plummeting 17.5% amid concerns that Democratic wins in the recent midterm elections might curb data center construction. However, the company's growth hinges on data center expansion. The market's reaction suggests Thursday's drop may have been an overreaction, especially considering the surprisingly strong October jobs report, which reported 165,000 new jobs added in the U.S. Micron's latest earnings were impressive: Q4 sales jumped to $54.23 billion from $11.32 billion a year ago, and the company announced forward guidance of $61.5 billion for the current quarter, exceeding Wall Street's expectations of $57 billion.
This robust performance has boosted Micron's share price, prompting the question of how a potential slowdown in data center construction could impact AI capital expenditures.
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- Why Micron Stock Is Up Today nasdaq.com