Why Did Micron Stock Pop Again Today?

For the 2nd time successful a row, Micron (NASDAQ: MU) banal moved higher connected Thursday, up 3.7% done 10:30 a.m. ET. For the 2nd time successful a row, the crushed is DRAM high-bandwidth representation (HBM).

And much precisely, however the laws of proviso and request nexus Micron's profits to HBM supply.

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This communicative is simply a spot complex, truthful fto maine unravel it for you. Today's quality starts astatine Cisco Systems (NASDAQ: CSCO), which reported beardown net past night, but warned the precocious outgo of machine representation whitethorn chopped into its profits successful aboriginal quarters. This tallies with caller expert reports describing unprecedented tightness successful the marketplace for DRAM representation chips generally, and HBM successful particular.

Responding to this tightness -- and to the precocious prices it's creating -- Micron rival Samsung began shipping its latest "HBM4" fourth-generation chips yesterday successful an effort to currency in. At the aforesaid time, rival SK Hynix, which owns "overwhelming" marketplace stock successful HBM, is besides moving to summation HBM production.

Last but not least, Micron, too, says it has begun high-volume accumulation of HBM4.

And determination you person it, folks: The crushed wherefore Micron banal is going up... but besides the crushed that Micron banal mightiness spell backmost down again.

On the 1 hand, HBM proviso is choky and prices are rising, driving Micron's profits higher. On the different hand, everyone sees this happening, and they're each rushing to summation accumulation and seizure those higher profits. Problem is, the precise information that everyone's boosting accumulation could yet extremity the proviso deficits -- and propulsion prices backmost down again.

The much things change, the much they enactment the same. The semiconductor banal remains intensively cyclical, and the roar times for Micron won't past forever.

Before you bargain banal successful Micron Technology, see this:

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