Why Micron Technology Stock Gained On Monday
Key PointsChip stocks, Micron included, are recovering from Thursday's sell-off, which was triggered by worries that Democratic wins in last Tuesday's midterms could slow the AI data-center build-out.
Micron Technology stock rose 6.3% on Monday, Nov. 9, as chip stocks continued to recover from a sell-off that occurred earlier in the week. The Motley Fool reports that the stock's jump coincided with gains in the S&P 500 and the Nasdaq Composite.
The previous sell-off was triggered by concerns that Democratic victories in last Tuesday's midterm elections could slow the build-out of AI data centers. Nasdaq Markets notes these worries centered on the potential for slowed data-center construction, while Motley Fool reports that many successful candidates ran on promises of increased scrutiny or moratoriums on new builds. Such a slowdown could lead to fewer orders for Micron's memory chips.
Despite these political concerns, investors appeared confident that capital expenditure would continue. Motley Fool also highlighted Micron's strong recent quarterly performance, noting that revenue increased 379% year over year to $54.2 billion.
Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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