Micron Technology Soars Despite Earthquake in Taiwan
Despite facing adversity, Micron Technology (NASDAQ: MU) emerged victorious in the tech sector on Wednesday. An earthquake in Taiwan, where much of Micron’s memory chip production is located, did not deter the company’s performance. In fact, swift reassurance from Micron, along with being tagged as a top pick by an analyst, led to a more than 4% increase in share price during Wednesday’s session.
Unshaken by the Earthquake
The earthquake, measuring 7.4 in magnitude, struck a relatively sparsely populated area. Thanks to existing safeguards and preparations, the damage and death toll remained limited. Micron promptly updated its business partners and investors about the safety of its employees. Although the chipmaker mentioned evaluating the impact to its operations and supply chain, the well-being of its employees suggests minimal damage to its facilities.
On the same day, Mizuho analyst Jordan Klein highlighted Micron as one of his preferred choices in the chip segment. Klein’s bullish outlook on the sector emphasized signs of a potential trough or bottom by 2024.
In addition to Micron, Klein’s top chip picks include Western Digital and Silicon Motion Technology.
Caution for Investors
While initial indications suggest that Micron was not significantly affected by the earthquake, the true impact remains uncertain. Therefore, the enthusiastic response from investors might be premature. It is advisable to await more concrete information about the situation before making any decisions regarding the stock.
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Eric Volkman has positions in Western Digital. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool maintains a disclosure policy.
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