Why Micron Stock Bounced Back Today

Fresh disconnected a $20-a-share driblet Tuesday, shares of Micron (NASDAQ: MU) bounced backmost powerfully Wednesday greeting -- and investors tin convey Seagate Technology (NASDAQ: STX) for the bump. Seagate blew past expert forecasts past night, reporting $4.10 per stock successful non-GAAP net alternatively of $3.48. Sales of $3.1 cardinal likewise bushed expectations for little than $3 billion.

Investors are exuberant, and they're buying each the machine representation stocks they tin find this morning.

What Seagate's bully quality means for Micron

Strange arsenic it sounds to accidental it, Micron banal got bushed up yesterday aft The Wall Street Journal reported that OpenAI is spending excessively much money connected artificial quality chips and the high-bandwidth representation to enactment them. But today, the amended communicative is becoming clearer: "too much" spending connected representation is conscionable close for companies that sell representation -- similar Micron and Seagate.

In past night's report, Seagate reported 44% year-over-year income growth, a 12-percentage-point summation successful operating nett borderline to 32.1%, and GAAP net per stock much than doubled to $3.27. Even amended quality for Seagate (and Micron), it turns retired the marketplace for representation is truthful beardown close present that Seagate was capable to rise its guidance:

Instead of the little than $4 a stock Wall Street thought it would gain this year, Seagate present expects to gain $5 a share.

What's adjacent for Micron stock?

Seagate CEO Dave Mosley says we're entering "a caller epoch of structural maturation arsenic AI applications amplify information instauration and enactment sustained retention demand." That sounds similar large quality for Seagate, and for Micron banal arsenic well.

And the champion crushed of each to bargain Micron? Seagate banal costs much than 32x guardant net close now.

Micron inactive costs little than 9x.

Should you bargain banal successful Micron Technology close now?

Before you bargain banal successful Micron Technology, see this:

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