What's Going On With Biden's Chips Act Beneficiary Micron Tech Stock Tuesday?
Portfolio Pulse from Anusuya Lahiri
Micron Technology (MU) shares are trading lower after the company raised its 2024 capex expectations to $8 billion from $7.5 billion. Micron, a key beneficiary of the U.S. CHIPS Act, is a leading provider of high-bandwidth memory (HBM) chips used in AI servers. The company expects HBM to be a multibillion-dollar business by fiscal 2025 and aims to enable over 50% of PCs to be AI-enabled by 2027. Micron also announced workforce development initiatives and partnerships with GlobalFoundries (GFS) and the U.S. National Science Foundation (NSF). Investors can gain exposure to Micron via Invesco Semiconductors ETF (PSI) and REX FANG & Innovation Equity Premium Income ETF (FEPI).
May 21, 2024 | 5:42 pm
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NEGATIVE IMPACT
Micron Technology shares are trading lower after the company raised its 2024 capex expectations to $8 billion. Despite the short-term dip, the company has strong long-term prospects with its HBM chips and AI initiatives.
The increase in capex expectations has led to a short-term dip in Micron's stock price. However, the company's strong position in the HBM market and AI initiatives suggest positive long-term growth.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
REX FANG & Innovation Equity Premium Income ETF provides exposure to Micron, which has strong long-term prospects despite a short-term dip due to increased capex expectations.
The ETF provides exposure to Micron, which has strong long-term prospects despite a short-term dip due to increased capex expectations.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 20
NEUTRAL IMPACT
Invesco Semiconductors ETF provides exposure to Micron, which has strong long-term prospects despite a short-term dip due to increased capex expectations.
The ETF provides exposure to Micron, which has strong long-term prospects despite a short-term dip due to increased capex expectations.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 20
POSITIVE IMPACT
GlobalFoundries is partnering with Micron to boost semiconductor talent in the U.S., which could enhance its workforce and production capabilities.
The partnership with Micron to boost semiconductor talent in the U.S. could enhance GlobalFoundries' workforce and production capabilities, benefiting the company in the long term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Nvidia's H200 chips will leverage Micron's advanced HBM3E, indicating a strong partnership and potential growth in AI server hardware.
Nvidia's use of Micron's HBM3E chips in its H200 chips highlights a strong partnership and potential growth in the AI server market.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50