Why Micron Technology Rallied Today

Shares of memory chip giant Micron Technology (NASDAQ: MU) rallied as much as 5.2% on Wednesday before falling back to a 3.5% gain as of the end of trading.Micron received a bullish analyst note yesterday, which likely carried into Wednesday after Oracle's (NYSE: ORCL) blowout long-term guidance last night. Yesterday's analyst note indicated memory would continue to be in undersupply next year, while Oracle's news lifted demand expectations for AI-related infrastructure through 2030.Yesterday, sell-side analysts at Citigroup issued a positive note on Micron, reiterating its buy rating and saying the memory industry is likely to be in undersupply through 2026. The analysts believe that DRAM's demand growth will outstrip supply growth by 1.8 percentage points. In a surprise note, Citi expects even NAND flash, which has suffered from oversupply in recent years since the pandemic, to see demand outstrip supply by four percentage points.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool