Micron Technology Inc.'s shares returned to rally mode on Tuesday, with a decline in chip maker stocks and a report that China might try to dampen rising memory chip prices.
MU, + 2.44%
shares have recently risen 2.9% to $ 63.10, even as the PHLX Semiconductor Index
fell 0.7% and the S & P 500 Index
Micron's share price has been in its best month since December 2009, rising 40%. In May, equities rose 37% after Micron received an investor day earlier this month as the company raised its outlook for the quarter and announced a $ 10 billion share repurchase. After the investor day of the company, equities rose four consecutive days and closed 0.2% last Friday.
For the year, equities rose 53%, compared with a 10% and 0.5% increase in the SOX index. S & P 500 Earnings
On Tuesday, Micron's stock reached a new 18-year intraday high of $ 63.98. The last time that the stock traded this high was September 21, 2000, according to FactSet data at $ 65.81.
The rally continues, even as the Chinese Ministry of Commerce talks to Micron executives about rising prices for memory chips, squeezing Chinese PC and phone manufacturers. According to market research firm TrendForce, China is the largest importer of memory chips, accounting for 20% of DRAM chip sales and 25% of NAND chip sales. The other two major players in the memory chip market are SK Hynix
000660, + 0.32%
DRAM or dynamic random access memory, chips, are the type of memory commonly used in PCs and servers, and NAND chips are the used flash memory chips B. in USB drives and smaller devices such as digital cameras.
Micron plans to report results on June 28. Analysts surveyed by FactSet expect earnings of $ 3.11 per share for the third quarter, with revenues of $ 7.74 billion.
Of the 30 analysts covering Micron, 24 have overweight or overweight ratings, five have hold ratings, and one has a sell rating with an average price target of $ 77.47.